The latest noteworthy development in the Yahoo saga has to do with the proceeds from selling their Alibaba stake. The expectation is that the deal will generate about $4 billion in cash for Yahoo. Marissa Mayer’s predecessors had indicated that the money would be returned to shareholders. Mayer has decided that the company should keep the money instead. This makes imminently more sense. Yahoo needs to remake itself, and that effort will require money. Giving the money back to the shareholders, while making them happy now, doesn’t help Yahoo.
