It's been a bit of a sour year for Yahoo -- it's seen the departure of one of its founding fathers, suffered through a patent dispute with Facebook and lost its new CEO in a sea of scandalous accusations. Yikes. At least former head honcho Scott Thompson's negotiations to sell the firm's stake in Alibaba seem to be going through -- the two firms just announced plans to redistribute about half of Yahoo's 40-percent stake in said Chinese tech giant. Under the current agreement, Alibaba will purchase 20-percent of its fully diluted shares back from the Silicon Valley company, netting Yahoo $7.1 billion in compensation. Yahoo will also be permitted to sell an additional 10-percent of its stake in a future IPO, or else require Alibaba to purchase it back at the IPO price.
Despite Yahoo's stake changing hands, the companies will still be working together -- Yahoo has cleared Alibaba to continue to operate Yahoo! China (which was acquired by the latter back in October 2005) under the Yahoo! brand for up to four years -- in exchange for royalty payments, of course. Finally, Alibaba will license various patents to Yahoo moving forward. What's next? Well, Alibaba CEO Jack Ma did let it slip at AsiaD that he's considered buying Yahoo as a whole, and repurchasing the firm's assets in Asia could be a step in that direction. Read on for the official press release in all its financial glory.
Continue reading Yahoo to sell back half of its Alibaba stake for $7.1 billion
Yahoo to sell back half of its Alibaba stake for $7.1 billion originally appeared on Engadget on Mon, 21 May 2012 00:01:00 EDT. Please see our terms for use of feeds.
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