Alibaba looking for investors to buy Yahoo’s stake

 
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.

Short URL: http://www.betadaily.com/?p=4052

Posted by Vikrant on Mar 19 2008. Filed under Business. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry