Yahoo’s Alibaba stake goes on sale – Internet News

The year 2012 has proved to be a bit harsh on Yahoo. In January, company lost its founding father Jerry Yang, who parted ways with Yahoo and Alibaba as well. In the month of March, Yahoo had a patent dispute with one of the very famous social networks, the
FACEBOOK. On top of it, the new CEO of Yahoo Scott Thompson stepped down in the middle of degree scandal in the running month of May. Phew..that’s a lot.. isn’t it?

Yikes….And now Yahoo is up to sell back half of its Alibaba stake for $7.1 billion. At least former head honcho Scott Thompson’s negotiations to sell the firm’s stake in Alibaba is becoming a true story — the two firms just disclosed their plans to redistribute
about half of Yahoo’s 40-percent stake in said Chinese tech giant.

Under the current agreement, Alibaba will purchase 20-percent of its fully diluted shares back from the Silicon Valley Company, which will bring Yahoo to $7.1 billion in compensation. Yahoo will also be allowed to give out an additional 10-percent of its
stake in a future IPO, or else require Alibaba to get it back at the IPO price.

Despite Yahoo’s stake changing hands, the companies will still be working hand-in-hand — Yahoo has openly annouced Alibaba to continue to operate Yahoo! China (which was acquired by the latter back in October 2005) under the Yahoo! brand for up to four
years — in swap for royalty payments, of course. Finally, Alibaba will license different patents to Yahoo moving forward.

What’s next? Well, Alibaba CEO Jack Ma did let it slip at AsiaD that he’s considered buying Yahoo as a whole, and repurchasing the firm’s assets in Asia could be a step in that direction. Read on for the official press release in all its financial
glory.

Short URL: https://www.newspakistan.pk/?p=23071

Posted by Irfan Khokhar on May 22 2012. Filed under Business. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry