/// Exclusive: Yahoo Finally Set to Strike Alibaba Share Deal — Half Now, Then Half of What’s Left After Eventual IPO

May 18, 2012  |  All Things Digital


Yahoo is in the final stages of selling a large chunk of its stake in the Alibaba Group back to the company — in a complex deal that is set to include a multi-billion-dollar share buyback to investors of the Silicon Valley Internet giant and an eventual IPO of the Chinese company — according to multiple sources close to the situation. The deal has yet to be officially approved by the boards of both companies, but sources said it is likely to be and could be announced as early as Monday. This all could change, of course, since negotiations between Alibaba and Yahoo have taken place in a variety of ways in recent years without success and with much acrimony. Talks over a tax-free deal — also involving Yahoo’s Japanese partner, SoftBank — collapsed in February, for example. But the 324th time is apparently a charm — so here are the details of what looks to be a nearly complete agreement that I have ferreted out thus far from lots of relieved sources familiar with the situation: Yahoo will sell half of its roughly 40 percent stake in Alibaba in a taxable deal. The transaction is likely to value that portion of Yahoo’s holdings at about $7 billion — or 20 percent of Alibaba’s $35 billion enterprise valuation

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Exclusive: Yahoo Finally Set to Strike Alibaba Share Deal — Half Now, Then Half of What’s Left After Eventual IPO


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