Yahoo Core buyout

I had a question about buyout procedures and what it would look like for shareholders, given this non-straightforward scenario.

We know that Yahoo is in talks to be bought out, seemingly by either Verizon, or AT&T (according to various reports). However Yahoo's structure is odd. They have their core business (ads, search's etc), but they also have a 15% share of Alibaba ($BABA) and 35% of Yahoo Japan. These shares are worth about $30B and $8B respectively. Theoretically Yahoo should have a market cap of at least $38B, assuming the core business is worth $0.

Now if Verizon buys out their core business holding for $X amount, but does not acquire their holdings, how would that acquisition look like from the shareholder end? Would it just be as if Yahoo got an extra $X amount in cash? (assuming cash deal) And then would Yahoo essentially be a "shell stock" that is .15BABA + .35Y!J shares?

Seeing as this is bound to happen in the next few months (if not sooner), I'm curious what the downside would be to owning Yahoo before an acquisition. Thanks for you input

Submitted July 18, 2016 at 12:29PM by DoctorTurbo http://ift.tt/29Q3OQF