as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
system
what significant negative factors affect yahoo's valuation?
user
there are two very large negative factors that affect yahoo's valuation.   the first is that their search business is in decline and continues to lose ground to google and even bing.  there's no sign that they have any plan or product in the works to offset this decline, so there's tremendous uncertainty about the company's forward-looking revenues. the second is that the company can't seem to decide what to do with its stake in alibaba, clearly the company's most valuable asset.  it they sell it, the question then becomes what they plan to do with the proceeds.  will they do share buybacks or offer a special dividend to reward investors?  will they use some or all of the money to make strategic acquisitions that are revenue-enhancing?  will they use it to develop new products/services?   keep in mind one other thing here, too.  there's a world of difference between what something is valued at and what someone's willing to actually pay for it.  a patent portfolio is great and perhaps holds good value, assuming the buyer can find a way to monetize it.  how exactly was the valuation of the patents arrived at, and are they worthwhile enough for someone to pay anywhere close to that valuation?   there's more to this than meets the eye by using a first-blush look at asset valuation, and that's where the professionals come in.  my bet is that they have it right and there's something the rest of the market doesn't see or understand about it, hence questions like yours. i hope this helps. good luck!
assistant