Does anyone have any wisdom on whether it would or would not be a good idea to participate in the Yahoo tender offer?
This is an opportunity to sell stock back to Yahoo itself at a price computed by a complicated formula based both on the performance of what will be Yahoo's major surviving asset and based on participation choices of other Yahoo shareholders. So far as I understand, one must decide whether to sell before knowing the price at which you would sell.
I was asked for advise by a family member who owns some Yahoo stock and I generally don't have a clue on this one. I don't know if there will be shareholder tax consequences to NOT participating (as a result of the Yahoo restructuring that is indirectly associate with this offer). Obviously there are tax consequences to participating and those are unfortunate this year and would be better next year. I think there is also a brokerage fee for participating vs. a commission free trade (for that individual's brokerage account) if simply sold for a long term gain next year after all the dust settles on this deal.
Long term, I think the new form Yahoo will take will be an even worse investment than Yahoo was before. But it has already done better than I previously thought it would. Anyway, my best guess would be the market won't catch on to why Yahoo isn't worth it as quickly as a year.
So lacking any insight anyone here provides, I would suggest skipping the tender and selling the stock next year. But there are several aspects of this that were far from revealed in my quick read of online articles on the tender offer. If you have insight on any of that, please reply.
Submitted May 21, 2017 at 08:10AM by jsf67 http://ift.tt/2qHEOnu
