Is website #5 in the world really worthless? #valuations

This has surfaced once again this year, but I’m having a bit of trouble with the math here:

Yahoo … represents the third-most visited Internet sites in the U.S. … investors are valuing Yahoo’s core business at less than zero

I do think Yahoo is a dinosaur, but hey – I think the same about Walmart but it doesn’t stop the latter from remaining the world’s largest company by revenue.

[Yahoo’s] 15% stake in Alibaba is now worth about $32 billion

So – even with the exuberance over China – how is website #5 in the world worth less than zero, but their own stake in website #56 in the world is $32 billion?

(Yes, Alexa is a shot in the dark, yes, some valuations are based mostly on perceived potential, and yes, I hate Yahoo services as much as the next guy, and think that Marissa Mayer could have would have should have, but still…)

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