TweakTown
Tech content trusted by users in North America and around the world
5,928 Reviews & Articles | 38,196 News Posts

Yahoo sells half the shares it owns in Alibaba, rakes in $7.1 billion

Alibaba to buy back shares from Yahoo, to the tune of $7.1 billion worth

| Business, Financial & Legal News | Posted: May 22, 2012 2:50 am

Yahoo have been having a hard time lately, with increased competition from Google and others, and have just announced today that they have reached a deal to sell part of their stake in China's biggest internet company, Alibaba Group Holdings Ltd.

 

TweakTown image news/2/4/24216_03_yahoo_sells_half_the_shares_it_owns_in_alibaba_rakes_in_7_1_billion.jpg

 

The deal will have Alibaba buying back half of Yahoo's 40-percent stake in the group for a nice $7.1 billion. Alibaba will wave $6.3 billion in cash in front of Yahoo, as well as $800 million in Alibaba preferred stock. Alibaba are also required to buy back a quarter of the remaining shares at the price of a future IPO, or alternatively, allow Yahoo to sell them in the expected public offering in the near future.

 

This deal now pits Alibaba Group's worth at around $35 billion. Alibaba CEO Jack Ma said in a statement to Bloomberg:

 

The transaction will establish a balanced ownership structure that enables Alibaba to take our business to the next level as a public company in the future.

 

Alibaba is doing extremely well, with rumors that Alibaba's CEO owns a 7.4-percent share in the group, and is readying an initial public offering. Industry insiders are predicting that the Chinese online shopping industry will grow by 42-percent this year alone.

NEWS SOURCES:Techspot.com

Related Tags

Further Reading: Read and find more Business, Financial & Legal news at our Business, Financial & Legal news index page.

Do you get our news RSS feed? Get It!

Post a Comment about this news

Latest Tech News Posts

View More News Posts

TweakTown Web Poll

Question: Facebook's acquisition of Oculus VR will...

Improve Oculus Rift Development

Hamper Oculus Rift Development

Completely destroy Oculus Rift Development

Let's wait and see, I'm not sure

or View the Results

View More Polls

Forum Activity

View More Forum Posts

Press Releases

View More Press Releases