/// As Expected, Alibaba Closes $7.6 Billion Yahoo Deal
Yahoo has closed the multibillion-dollar sale of half its assets in China’s Alibaba Group. Alibaba said Tuesday that it has completed the initial repurchase of shares from Yahoo and restructured its relationship with the Silicon Valley company in a deal valued at $7.6 billion. AllThingsD reported that the transaction’s official completion was in the works last week . After taxes, the deal will net Yahoo around $4.5 billion — a very nice return on the $1 billion Jerry Yang put into Alibaba seven years ago. Until recently, the plan was to return much of that cash to shareholders. But new CEO Marissa Mayer has told Wall Street that she has other plans for the money , and there are many bankers, investors and entrepreneurs trying to convince her to spend some of it on a wide range of acquisitions . Stay tuned! Alibaba Closes US$7.6 Billion Share Repurchase and Restructuring of Yahoo! Relationship Alibaba Completed More Than US$12 Billion in Transactions Over Past 12 Months; Financings Provided by Global Banks and Institutional Investors HANGZHOU, China, Sept. 18, 2012 – Alibaba Group Holding Limited, China’s largest e-commerce company, announced today it has completed the initial repurchase of shares from Yahoo! and restructured its relationship with the Silicon Valley company in transactions valued at approximately US$7.6 billion. The closing follows the May 20, 2012 announcement by Alibaba Group and Yahoo! of a comprehensive plan for Yahoo! to reduce its stake in Alibaba Group in stages over time and a series of agreements to implement the restructuring of the ongoing relationship between the two companies. The initial repurchase of shares, which represented one-half of Yahoo!’s 40% stake in Alibaba Group on a fully diluted basis, was valued at approximately US$7.1 billion. Of this, Yahoo! received approximately US$6.3 billion in cash and US$800 million in preference shares in Alibaba Group. Concurrent with the initial repurchase, Alibaba Group paid Yahoo! a one-time cash payment of US$550 million in connection with the amendment of their existing technology and intellectual property license agreement.
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