China-Based Internet Company Alibaba Debuts On New York Stock Exchange
Alibaba Group signage posted outside the New York Stock Exchange. Photograph by Andrew Burton—Getty Images

Yahoo earned a $9.4 billion windfall from selling shares in Alibaba’s IPO

Sep 30, 2014

We knew Yahoo was going to score big with its investment in Chinese e-commerce giant Alibaba, which raised a record $25 billion in a recent initial public offering. Now, it's official.

Yahoo took in $9.4 billion by selling 140 million shares in Alibaba's IPO, according to a regulatory filing.

Yahoo's windfall represents a blockbuster investment and a huge opportunity for CEO Marissa Mayer. She has yet to say what she will do with the money. But she may use it for acquisitions and buying back shares to help prop up her company's stock price. Wall Street, however, is dubious about her managing any the money well and are valuing Yahoo for little beyond its cash hoard and remaining Asian investments.

Following the IPO, Yahoo retains 383 million Alibaba shares, representing a 15% stake in the company.

Yahoo (yhoo) left some money on the table by selling in the IPO at the offering price of $68. Those Alibaba shares (baba) have since increased in value to $88.85 at the close of trading on Tuesday.

And along with Yahoo's windfall from Alibaba, Japanese tech giant Softbank also gained from its 34% stake in the company. Softbank's founder Masayoshi Son became the richest man in Japan - on paper, at least - as his net worth reached $16.2 billion after the IPO.

Alibaba co-founder Jack Ma, meanwhile, became China's richest man with a net worth of $25 billion.

All products and services featured are based solely on editorial selection. FORTUNE may receive compensation for some links to products and services on this website.

Quotes delayed at least 15 minutes. Market data provided by Interactive Data. ETF and Mutual Fund data provided by Morningstar, Inc. Dow Jones Terms & Conditions: http://www.djindexes.com/mdsidx/html/tandc/indexestandcs.html. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Terms & Conditions. Powered and implemented by Interactive Data Managed Solutions