News this week: China’s largest B2B e-commerce company, the Alibaba Group, will pay its key shareholder,
U.S.-based Yahoo! Inc., US$7.6
billion to buy back a 20% stake in the company as a result of the agreement
reached in May this year.
Yahoo is expected to receive US$7.1 billion as soon as next
week, as well as a US$550 million payment related to the ending of annual licensing
fees Alibaba pays Yahoo. It is estimated Yahoo will receive approximately
US$4.5 billion from the deal after U.S. taxes.
The company initially invested US$1 billion in Alibaba in
2005. The sale leaves Yahoo holding approximately 20% of Alibaba shares. Under
the terms of the deal, Yahoo is required to sell an additional 10% if a future
Alibaba Group IPO occurs.
This post is excerpted from BSG's weekly e-newsletter
which is part of our subscription research service, BSG Tracker. Visit our website
to find out more about this service. You can also follow us on Twitter
for all the latest updates.
No comments:
Post a Comment