Alibaba Says They Have “Moved On” From Talks With Yahoo! About Selling Stake
Alibaba.com Limited (HKG:1688) said that they have “moved on” from talks with Yahoo! Inc. (NASDAQ:YHOO). Essentially Alibaba wanted to buy back stake in their company that Yahoo! owns. But both parties have failed to reach an agreement this year.
“We have no intention of raising this issue again,” stated Alibaba spokesman John Spelich. Supposedly the talks ended in June. Yahoo! owns 39% in Alibaba and that stake is worth $11 billion according to Susquehanna Financial Group.
Alibaba sent a formal proposal to Yahoo! co-founder and former CEO Jerry Yang about 9 months ago. Alibaba sold the stake to Yahoo! in 2005 for $1 billion and ownership of Yahoo!’s Chinese division. Alibaba continues to operate the local Yahoo! portal.
[NYT]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry