Yahoo will sell half its stake in Chinese e-commerce heavyweight Alibaba back to the company for about $7.1 billion, setting in motion a deal that will send cash toward Yahoo shareholders. The deal will take place in multiple stages. First, Alibaba will purchase about 20 percent of Yahoo’s stake in the company. The total $7.1 billion would be made up of about $6.3 billion in cash and up to $800 million in new Alibaba preferred shares. Additionally, if Alibaba goes public in the future, it would have to either repurchase 10 percent of Yahoo’s current stake in the company or allow Yahoo to sell those shares in the IPO.
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Yahoo Cashes Out of Alibaba
Posted by: Rachelle Dragani May 21, 2012 11:01 AMYahoo will sell half its stake in Chinese e-commerce heavyweight Alibaba back to the company for about $7.1 billion, setting in motion a deal that will send cash toward Yahoo shareholders. The deal will take place in multiple stages. First, Alibaba will purchase about 20 percent of Yahoo’s stake in the company. The total $7.1 billion would be made up of about $6.3 billion in cash and up to $800 million in new Alibaba preferred shares. Additionally, if Alibaba goes public in the future, it would have to either repurchase 10 percent of Yahoo’s current stake in the company or allow Yahoo to sell those shares in the IPO.