China's Alibaba Group buys back 20 pc stake from Yahoo
NEW YORK - China's largest e-commerce provider Alibaba Group Holding has agreed to repurchase a 20 per cent stake held in the company by Yahoo! for about $7.1 billion.
Under the agreement, Yahoo! is to sell half its stake in Alibaba for at least $6.3 billion in cash and up to $800 million in new Alibaba preferred stock, it was announced in a joint statement Monday.
At the time of a public listing, Alibaba will have to either buy back a quarter of Yahoo's current stake or let Yahoo sell the shares. The deal has valued Alibaba at about $35 billion.
Alibaba chief executive officer Jack Ma owns about 7.4 per cent of Alibaba Group. According to a Hong Kong stock exchange filing last month, his stake is worth $2.6 billion.
"The transaction will establish a balanced ownership structure that enables Alibaba to take our business to the next level as a public company in the future," Ma said in the statement.
In 2005, Yahoo had acquired a 40 per cent stake in Alibaba in exchange for $1 billion and ownership of Yahoo's Chinese operations.
Alibaba has been pushing to buy back the stake for more than a year and stepped up efforts in September due to improved prospects and expansion beyond China. The deal reduces Yahoo's presence in China, the world's largest internet market.
"As e-commerce in China continues to grow, Alibaba is a very attractive asset," said Duncan Clark, chairman at BDA China in Beijing, which advises technology companies.
"Alibaba is in a better position now to do an IPO. The competitive pressures are increasing, and the need to reward staff and make acquisitions means it's helpful for them to list," Bloomberg quoted him as saying.
Comments
More Mexico News
RSS-
Mexican Roots for Majority of Latinos
Jun 19, 2013 6:19pm Mexican Latinos make up more than two thirds of all Latinos in the United States, according to a new Pew Hispanic report. Of the 51.9 million Latinos living in the United States in 2011, more than 33.5 million trace their family back to Mexico. The report looked at demographic data collected from the 2011 American Community Survey. The report also examined U.S. ...
-
Neymar shines as Brazil account for Mexico
Neymar all but fired Brazil to the semi-finals of the Confederations Cup as they saw off the challenge of Mexico, 2-0, in the Group A clash at Estadio Castelao. Brazil won their opening match against Japan and the three points from tonight means they are in pole position to progress to the next stage, while in contrast, Mexico's cup ambitions look to be over after they also lost their ...
-
Neymar stars as Brazil sink Mexico
Brazil 's No10 wheeled off in celebration, and was quickly joined by his team-mates, the noiseinside the Estadio Castelao was deafening. The stage seemed set ...
-
UPDATE 1-Storm Barry heads for Mexico Gulf coast oil installations
Wed Jun 19, 2013 6:02pm EDT MEXICO CITY, June 19 (Reuters) - Tropical Storm Barry, the second of the Atlantic Hurricane season, churned toward Mexico on Wednesday, threatening to bring heavy rains to key oil and power installations near the country's Gulf coast. The Minatitlan oil refinery of state oil monopoly Pemex and the Laguna Verde nuclear power plant, both in Veracruz state, are ...
-
Brazil 2-0 Mexico Star man Neymar the match-winner again
Brazil got one foot in the Confederations Cup semi-finals by defeating Mexico 2-0 at the Castelao on Wednesday.Neymar lit up the occasion with an outstanding volley nine minutes in, but what threatened to be a goal glut for the hosts progressed in somewhat anticlimatic fashion, until the Barcelona forward brilliantly set up Jo for the clincher in the dying seconds. Brazil's victory sees ...
-
Mexican Bishop Who Was Nobel Nominee Aims to Fact-Find in Syria
Delegation Set to Collect Information on Rights Violations in War ZoneROME, May 30, 2013 (Zenit.org) - Bishop ...
-
UPDATE 1-Mexicos peso stock market slump after Bernanke comments
MEXICO CITY, June 19 (Reuters) - Mexico's peso dropped to a seven month low and the country's blue chip stock index fell to its lowest level in almost a year after the U.S. Federal Reserve laid out a blueprint for how it could wind down its ...
-
Neymar Strikes Again as Brazil Beat Mexico
FORTALEZA, Brazil ...
-
Tropical Storm Barry forms in Gulf aims toward Mexico
OUTLOOK: Now we have Tropical Storm Barry, the second named storm of the 2013 Atlantic hurricane season. After bulking up in the warm waters of the southern Gulf ...
-
Most Wanted Professor Nabbed in Mexico
This 2011 image shows Walter Lee Williams, 64, one of the FBI's 10 most wanted fugitives who has been arrested in the resort city of Playa del Carmen, Mexico, June 18, ...
-
Matthew Depew Columbine survivor dies working on power lines in New Mexico
Matthew Depew, a survivor of the 1999 Columbine High School shootings who was working for Xcel Energy in Carlsbad, N.M., died Saturday while working on power lines, according to local authorities.Depew, 30, was reportedly working to restore a power outage on State Road 360 when he was electrocuted at about 6:40 a.m., and all attempts to save his life were unsuccessful, according to a press ...
-
Mexicos peso erases gains after Fed announcement
MEXICO CITY, June 19 (Reuters) - Mexico's peso erased gains and the country's blue chip stock index fell after the U.S. Federal Reserve said on Wednesday it would maintain its bond-buying program to support the U.S. economy. Mexico's benchmark ...
-
CORRECTED-Mexico sells 5.145 bln pesos in Cetes auction-cenbank
Wed Jun 19, 2013 4:07pm EDT (Corrects amount of auction) MEXICO CITY, June 19 (Reuters) - Mexico sold 5.145 billion pesos ($399.62 million) in an extraordinary auction of 49-day T-bills, or Cetes, to help mop up liquidity in the money market, the country's central bank said on Wednesday. The central bank said it sold the T-bills at a weighted average yield of 3.85 percent. ($1 = 12.8748 ...
-
Agricultural runoff could create record Gulf of Mexico dead zone
Spring floods across the Midwest are expected to result in a very large and potentially record-setting 2013 Gulf of Mexico "dead zone," researchers say. Farmland runoff containing fertilizers and livestock waste, some of it from as far away as the Corn Belt, is the main source of the nitrogen and phosphorus that cause the annual Gulf of Mexico hypoxic zone, an oxygen-depleted area ...
-
EMERGING MARKETS-BMFBovespa weighs on Brazil stocks as Fed eyed
SAO PAULO, June 19 (Reuters) - Brazil's benchmark stock index fell on Wednesday as shares of local bourse BM&FBovespa dropped over 3 percent on fears of possible competition with NYSE Euronext, while other Latin American stock markets were little changed ahead of a key statement from the U.S. Federal Reserve. Investors were seen mostly on hold before the Fed releases its policy ...
-
In Tijuana Ed pays homage to seven leaves and a duchess.
"First, you must have chilled romaine lettuce," he says. "Take the leaves from the inside, top and tail chopped off, because there can be some bitterness there. Put in mustard, grind in some pepper, crush anchovies and garlic, and grate some parmesan. Now you break the egg -- coddled, so it's a little firmer -- strain out the white, and drop the yolk ...
-
Soccer Neymar leads Brazil to win over Mexico
Neymar made the difference for Brazil again on Wednesday, scoring in the ninth minute and making one for Jo to give the hosts a 2-0 win over Mexico and virtually secure a spot in the semifinals of the Confederations Cup. The Brazilian striker scored his second goal of the tournament with a left-footed volley from just inside the penalty box after Mexican defenders failed to clear a cross. Mexico ...
-
UPDATE 2-Warm trend props up U.S. natgas futures for third day
* Hotter weather expected for U.S. Northeast, Midwest * Outlook for Texas and the South still fairly mild * Tropical system not seen disrupting U.S. gas production * Coming up: EIA, Enerdata natgas storage data on Thursday (New throughout; changes byline; adds analyst quote; updates prices) By Joe Silha NEW YORK, June 19 (Reuters) - U.S. natural gas futures edged higher on Wednesday for a ...
-
FBI Most-wanted Suspect Nabbed in Mexico
A former University of Southern California professor on the FBI's most-wanted list for alleged sex crimes involving children was caught in Mexico, the FBI said. Bill Lewis, FBI assistant director in charge, said 64-year-old Walter Lee Williams was arrested Tuesday by Mexican authorities, The Los Angeles Times reported. The FBI said authorities have identified at least 10 of the ...
-
Mexico arrests man on FBI’s top list
Mexican officials said late Tuesday that they had arrested former US university professor Walter Lee Williams, an alleged child sexual predator on the FBI's list of top 10 Most Wanted ...
-
One of U.S. FBIs most wanted nabbed at Mexico beach resort
If you’re young and hoping to work your way up into a high-paid position, here are 10 jobs you’ll probably want to avoid. People in these jobs work at the bottom strata of the labour market, according to the latest survey by the U.S. Bureau of Labor Statistics' Occupational Employment and Wage ...
-
Pittsburgh Council rejects expansion of Mexican War Streets historic district
Pittsburgh City Council on Wednesday unanimously rejected legislation expanding the North Side's Mexican War Streets historical district and restricting what residents could do to the exterior of their homes and ...
News from around our Network
Comments
No comments yet for this story
Have your say