According to reports, the sale of Yahoo’s 1.14 per cent stake in Alibaba.com will amount to US$150 million, sold on the Hong Kong Stock Exchange, two years after Alibaba.com issued its first public offering.
Yahoo additionally holds a 40 per cent stake in Alibaba Group, Alibaba.com’s parent company, which will not be affected by the sale.
Yahoo additionally holds a 40 per cent stake in Alibaba Group, Alibaba.com’s parent company, which will not be affected by the sale.
Alibaba Group wholly owns China Yahoo, which it acquired in 2005.
The news comes as Alibaba Group made the decision to restructure parts of China Yahoo, announcing the shift of classified listings site Koubei.com from Yahoo China to its auction site Taobao.com, which led to the rumoured exodus of 100 Beijing-based China Yahoo employees who decided to resign instead of transfer to Hangzhou as part of the deal.
According to a source close to Yahoo, the company’s move to sell its stakes is strictly an issue of finance and does not indicate a distancing between the two internet giants in China.
“My assumption is that Yahoo is getting pressure from shareholders to sell some of its stocks outright. I definitely think that’s more the issue than a Yahoo/Alibaba thing,” the source said. “I don’t think this will change anything between these two guys, frankly.”
The source added that Yahoo’s decision, however, may be indicative of the company’s financial situation, whereby Yahoo may need the US$150 million. “This is in line with what shareholders wanted,” the source said.
