My guess is that Alibaba's valuation for its IPO -- assuming it's this year -- will probably come in between $65 million to $70 billion, so Alibaba will have excess left on this new debt it's raising.
Most Yahoo! watchers expect an extra billion to Yahoo! for the preferred shares. That plus the confirmation that Alibaba is going to go public could really put a bounce in Yahoo!'s stock.
At the time of publication, Jackson was long YHOO.