Who wins on Yahoo Alibaba $7.1 billion deal?

Posted: 5:13 am, May 21, 2012 by Germaine Lombardo

China’s largest e-commerce provider, Alibaba has agreed to buy back up to half of a 40 percent stake in his Alibaba Group Holding Ltd. from, a troubled Internet media company Yahoo Inc (NASDAQ: YHOO) for $7.1 billion. Yahoo! will sell half of a 40 percent it’s stake in Alibaba for at least $6.3 billion in cash and up to $800 million in new Alibaba preferred stock.

Yahoo will divest an additional 10 percent of the Chinese Internet company, when largest e-commerce provider, Alibaba files for an initial public offering.

“Today’s agreement provides clarity for our shareholders on a substantial component of Yahoo’s value and reaffirms the significant of our relationship with Alibaba,” Ross Levinsohn, Yahoo’s interim chief executive, said in a statement.

“This transaction opens a new chapter in our relationship with Yahoo,” said Jack Ma, chairman and chief executive officer of Alibaba Group. “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.”

: Alibaba CEO Jack Ma

Yahoo acquired approximately 40% stake in Alibaba in 2005 with 1 billion dollars and Yahoo’s Chinese operations.

Alibaba Chief Executive Officer Jack Ma owns about 7.4 percent of Alibaba Group worth $2.6 billion.
Jack Ma is planning an Alibaba IPO following the success of last week’s offering by Facebook Inc. (FB).
China’s online shopping industry has a projected 42 percent growth this year.
Alibaba’s revenue rose to $2.3 billion in the year from $1.3 billion a year earlier.

Question: Who wins on Yahoo Alibaba $7.1 billion deal?
Answer: Alibaba and Chief Executive Officer Jack Ma are clear winner here!!!
What you think?

DON’T MISS: Hit List

Posted in: TECH

About the author: Germaine Lombardo

Germaine has held financial positions with a retailer, home-builder and university in her 10-year career. Those positions included treasurer, controller, and head of strategic planning. She is involved in product design and implementation and contributing to strategic initiatives within the magazine.

Explore the World of CEOWORLD Magazine

CEOWORLD Magazine is the only magazine written strictly for c-suite forward-thinking corporate executives and directors to network, learn and share ideas with peers that help them effectively lead their organizations.

Our collection of avid readers includes CEOs, CFOs, Chairmen, Directors, business leaders, corporate manager, entrepreneurs, venture capitalists, researchers and their peers – a powerful mix of executive professionals.

It covers a range of business and technology related news, analysis, emerging trends, information, strategy, growth opportunities, challenge on global economy, and executive life.

Some of the companies it covers in depth include Microsoft, Blackberry, Google, Apple, Facebook, Twitter, Zynga, Cisco, but it also covers pathbreaking start-up companies.

As an authority on the future of business and technology, it is a leading source for reliable news, review and updated analysis for people who create and fund the innovations that drive the global economy.