Alibaba, Yahoo likely to sign deal
2012-05-21Alibaba Group Holding is believed to be in an agreement to buy back a 20% stake in itself from Yahoo for about $7 billion and may announce a deal soon.
Jordan Rohan, an analyst, Stifel Nicolaus & Co. shared, “Alibaba has been trying to buy back the stake in itself for more than a year and stepped up efforts in September, when the US company fired former chief executive officer Carol Bartz. Reducing the Alibaba stake lessens Yahoo's toehold in China, the world's largest Internet market, while also making a takeover of the US company more likely. For Yahoo shareholders, the sale and subsequent march towards an IPO is a clear positive, as many questioned whether Yahoo would be able to monetize its China assets at all. In addition, the capital required to take Yahoo private is reduced with each Alibaba monetization event."
See What’s Next in Tech With the Fast Forward Newsletter
Tweets From @varindiamag
Nothing to see here - yet
When they Tweet, their Tweets will show up here.