Yahoo! Closes On $7.6 Billion Alibaba Deal
Yahoo! has closed on the $7.6 billion sale of Alibaba. Yahoo! owned over half of the company before the sale took place. According to Alibaba VP John W. Spelich, the Chinese e-commerce company handled around $12 billion in transactions in the past 12 months and has a valuation of $40 billion. This is the largest private non-LBO financing ever for a technology company. Now Alibaba has $3 billion in cash and has strategic flexibility. After taxes, Yahoo! made around $4.5 billion. This is a solid return on the $1 billion that Yahoo! co-founder Jerry Yang put into the company seven years ago. It is likely that some of the proceeds will go back towards the shareholders as part of a stock buy-back plan.