Sunday, May 20, 2012

Yahoo strikes deal to sell half of Alibaba stake




Yahoo and Alibaba have finally agreed to a deal that will see the Internet pioneer sell back half its stake in China e-commerce giant for $7 billion, according to an All Things D report.


The taxable deal, which still requires approval by each company's board of directors, includes a complex share buyback plan by Yahoo and an Alibaba IPO, All Things D reported.


CNET has contacted Yahoo for comment and will update this report when we learn more.


Yahoo is expected to sell half its 40 percent stake in Alibaba, roughly 20 percent of the company, in a deal that values the company at $35 billion. Yahoo is then expected to take its considerable capital gains from that sale and start buying back its own shares, which have long languished in the mid-teens.


Incentives would also be put in place for an Alibaba IPO at some time in the future, at which time Yahoo would sell its remaining quarter of the company, All Things D reported.


The deal, which is expected to be announced tomorrow morning, would finally put an end to one of more difficult corporate relationships in the Internet community. Yahoo, which has been in a state of uncertainty for months, was said to be considering a deal to ... [Read more]



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