According to Reuters, Alibaba.com is seeking investments to buy out Yahoo’s stake in the company. Yahoo had merged its Chinese operations with Alibaba in 2005 and got a 39% stake in return.
The move by Alibaba is an indicator of two facts:
- Alibaba believes that Microsoft will be able to acquire Yahoo.
- Alibaba is not in favor of the deal and would prefer independence in case the deal goes through.
The company seems to have a “Right of First Offer” to buy Yahoo’s stake which will be exercised if Microsoft is able to acquire Yahoo.
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