Home News Business Culture Travel Model Districts People Video Photos
Site Search
Home / Events

Yahoo, Alibaba reach agreement on buyback deal
( Xinhu )

SAN FRANCISCO - Yahoo Inc and Alibaba Group Holdings Ltd said Sunday evening that they have reached an agreement on a buyback plan for Yahoo's stake in China's largest e-commerce provider.

According to the agreement, Alibaba will repurchase half of Yahoo's 40-percent stake in the Chinese company, or approximately 20 percent of Alibaba's diluted shares, said the two companies in a joint statement.

Yahoo will receive at least $6.3 billion in cash and as much as $800 million in newly issued Alibaba preferred stock.

Meanwhile, at the time of Alibaba's initial public offering in the future, the Chinese company will be required either to purchase one-quarter of Yahoo's current stake at the IPO price or allow Yahoo to sell those shares in the IPO.

Yahoo and Alibaba believe this agreement to be the best path to align incentives and maximize value for shareholders of both companies, said the two companies in the statement.

It paves the way for Alibaba to achieve future public market liquidity for all of Alibaba's shareholders and provides Yahoo for a staged exit over time, balancing near-term liquidity and return of cash to shareholders with the opportunity to participate in future value appreciation of Alibaba, they said.

"This transaction opens a new chapter in our relationship with Yahoo," said Jack Ma, chairman and chief executive officer of Alibaba Group. "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."

Yahoo acquired approximately 40 percent stake in Alibaba in 2005 with $1 billion and Yahoo's Chinese operations. The Hangzhou, China-based company has been trying to buy back the stake in itself for more than a year.


Focus News
Grand Canal inspires NCPA production
Top tier service
China intensifies efforts to protect ancient canal
Free loan-bike program loses one a day to thieves, abuse
Crowd mourns hero bus driver
Bus driver honored as "revolutionary martyr"
Web China: Chinese mourn bus driver folk hero who saved 24
Investment Opportunity
Introduction to Hangzhou
Alibaba to accept Russian online payments
Group-buying sites hit by consolidation
Bosch gears up for growth in China
High-end Web shops being hit
Developer applies for bankruptcy in Hangzhou
Boom time for private sector in 2012
Online group buying to be regulated