Yahoo! Closes On $7.6 Billion Alibaba Deal

Posted Sep 18, 2012

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.