Jack Ma could pay high price to be rid of Yahoo
By Wei Gu
HONG KONG Dec 23 (Reuters Breakingviews) - The Alibaba founder wants to buy back most of Yahoo’s stake in his e-commerce giant. An earlier spat over their payment unit Alipay showed Ma has nuisance value and may deter other bidders. But financing it won’t be easy. After selling at the bottom, he risks paying a peak price.
SIGN UP FOR BREAKINGVIEWS EMAIL ALERTS:
-- The board of Yahoo (YHOO.O) is considering a sale of the bulk of its holdings in the Alibaba Group of China, and Yahoo’s Japanese affiliate, back to their majority owners in a complex transaction that values the stakes at about $17 billion, according to the New York Times Dealbook, which first reported on the plan on Dec. 21.
-- The proposal values Yahoo’s 43 percent in Alibaba at about $12 billion, and its 35 percent stake in Yahoo Japan at about $5 billion. It could be executed either as a stand-alone deal or alongside a minority investment in Yahoo by private equity firms Silver Lake or TPG. Yahoo is expected to keep a 15 percent stake in Alibaba, according to Dealbook.
-- Reuters: Yahoo to weigh deals for Asian assets - sources [ID:nN1E7BK0FD]
Ma, he’s making eyes at me [ID:nS1E78P0BJ]
The author is a Reuters Breakingviews columnist. The opinions expressed are her own)
-- For previous columns by the author, Reuters customers can click on [GU/]
((email@example.com)) Keywords: BREAKINGVIEWS YAHOO/
(C) Reuters 2011 All rights reserved. Republication or redistribution of Reuters content, including by caching, framing, or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.
- Tweet this
- Share this
- Digg this
DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.