about mobile, yahoo saw some good mobile ad revenue growth in their quarter just a day ago marisa mier has now spun out her ali baba shares into spinco. would you have any interest in buying all orart of spinco? >> we don't anticipate entering into an agreement with yahoo or spinco. this is something that is the right of yahoo to do. their bored has obviously decided to do the spinoff. from our interspective operating the business day-to-day, today we have a 15% shareholder in us, yahoo. after the spinoff we'll have another 15% shareholders spinco. it doesn't really change anything from our perspective. but i would like to just take this opportunity to thank marisa mier and also jackie resus, who has been on the board of directors until the i.p.o. they've been great partners with us over the last couple of years. >> joe, i know you're a great deal maker, you have made lots of deals for ali baba. is yahoo on your radar at all? can i ask that? >> we are very focused on our business in china. if you look at the deals we do in terms of investments and m.m.a. activity, over 90% of them are focused on how we grow our user base, how we increase user engagement and how we expand our cat

yahoo! of course, with spinco being created or in the process of alibaba shares themselves, which we'll heare company tomorrow morning, are down. it would appear on reports out of china about more tension between the company and the government. china -- the biggest platform apparently hitting back at the results of an official quality survey that accused it of selling fake and substandard goods. they say the poll sampling methods were questionable and test standards unfair in an open letter published on its account in which it said you're not being fair to us. state administration of industry and commerce that did it. but it's an interesting relationship, to say the least, between alibaba and the chinese government. and when you see tension perhaps there, you have to at least pay attention. >> yeah. this is -- remember party runs everything there. we tend to think it's a great capitalist country. but you don't want that to happen. you don't want that -- they have to project, when they give guidance, maybe the government is going to intrude? we saw when the government intruded with fast food

or six bucks a share that's going to come back into yahoo! stock over the next few weeks as people understand the value of this spinco. so it was a good move, but i think there's still going to be a lot of questions hanging over marissa mayer. >> yeah, but i mean come on, eric, shouldn't you be a happy man today. i mean, you've been critical of her. you've been critical of the company. the core business obviously has its issues. i'm not going to suggest otherwise. she came in, the stock was at 15. today the stock is at 50. she's returned a lot of money to shareholders. she's done the move with alibaba that you and others have suggested tax-free. there's some momentum here beyond just the substance of sitting in the seat, right? >> well, to be honest, scott, quite honestly you or i could have taken over the job 2 1/2 years ago and the stock would have gone from 15 to 50. this is predicated on alibaba and that explosion. so yeah, am i unhappy? i'm unhappy because i want the stock to be $80. i think it should be today. i think it can get to $80 before the end of the year and when you look at how she's done as an operator

discount to spinco, where they're putting the 384 million shares of alibaba and we take what the worth is of their stake in yahoo! japan and discount that the core business is valued at nothing or and so -- >> true. >> you've got a couple of analysts coming out and doing the math. yahoo! shares up a half a percent. >> i'm with them. the problem -- your interview with jerry tsai. >> joe tsai. >> talk about the government i mean the government, the government, what a poorly-timed -- the government's savy -- what a poorly timed release of the investigation. they knew it in july? >> they came back very combative, alibaba and the paper has been withdrawn now from that. >> look, alibaba is not as bad as the stock. but there is a big expiration. i also -- a lot of people felt that you would see much better mobile. mobile's everything. if you go google google is mobile king. facebook loves mobile. make more money on mobile. mobile is everything. programmatic -- for google -- i mean these companies, honestly, you have to be 23 to understand the power. >> transition to mobile is an important one, as you point out. facebook has made it magnificently. >> yeah. >> given that number from bob