Yahoo! and Alibaba agree stake buy-back deal

Yahoo! and Alibaba have finally reached a deal that will see the latter buy back half of Yahoo’s 40% stake in the firm for USD7.1bn. The deal, which sees Alibaba pay USD6.3bn in cash and a further USD800m in stock, concludes years of protracted negotiations and enables the company to push ahead with plans for an IPO. The deal stipulates that Alibaba must buy a quarter of Yahoo!’s current stake in the firm at the point of an IPO, or allow the firm to offload its shares during the offering. The USD7.1bn figure is linked to Alibaba’s recent funding round, which valued the firm at USD35bn. Alibaba intends to raise a combination of debt and equity to fund the buyback, which will boost the amount payable to Yahoo! if it values Alibaba above USD35bn.

Amount (USD) Seller Buyer(s) Region Categories

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