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There is an explanation for why their market cap does not reflect the numbers you cite:

In the current environment, value = mobile devices + ecosystem

Yahoo is missing two things:

1) An alliance to provide a mobile ecosystem

2) All the parts needed for a mobile ecosystem

Apple, Google, and Amazon are winning at this kind of value creation. Facebook is doing well enough, especially in developing markets. Microsoft owns both factors but can't make them add up.

If I was running Yahoo, I'd be looking to more-quickly mature Aliyun in Asian markets and then expand out of that region, maybe to a developing market first, but eventually to the US and Europe. I would use the ecosystem requirements to drive emphasis on online properties.



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