What About Yahoo's Original Business?

Yesterday, we looked at how the market values Yahoo, and tried to understand why a company with $6.3BN in net assets, and another $31BN in a fairly liquid equity investment is valued only at... $31BN! Interestingly, Daniel Morris pointed out an article in CNBC from September which argued that the issue is taxes. Essentially, Yahoo's investment is encumbered by a potential tax bill. If an when they liquidate it, the tax bill will be enough to wipe out the rest of Yahoo's assets.