Yahoolibaba $1bn deal done

As widely predicted yesterday, it is now confirmed that Yahoo will take a 40% stake in Alibaba.com for $1 billion cash and an injection of the Yahoo China business into Alibaba. The FT notes in its report that Alibaba.com founder, Jack Ma, will take over management responsibility for the Yahoo business in China.

Alibaba's story has been one of patient building through the craziness of dotcom bubble round 1, of Jack Ma keeping his head despite adulation from from a range of dubious cheerleaders including the Chinese government and Forbes, and of unusually patient investors.

Which way Jack will take the new combined company will be very interesting to see although it looks to us as though this may well mark the point at which it began to come clear that eBay is looking at its second failure in Asia....and a failure in China will be frowned upon by the markets.

Update: You have to love the Xinhua take on this deal: Alibaba.com acquires Yahoo China. The $1 billion Yahoo is sinking into Alibaba is relegated to paragraph 3!