BRANDING NEWS: Yahoo to sell 20 per cent stake in Alibaba
Yahoo has agreed a deal to sell back half of its 40 per cent stake in Chinese internet giant Alibaba Group.
The American company is expected to pocket just over $7 billion as part of the deal and will also allow Alibaba to follow in Facebook’s footsteps and consider an IPO.
A joint statement revealed that Yahoo will receive $6.3 billion in cash and up to $800 million in Alibaba preferred stock.
Yahoo’s shareholders will welcome the deal, as it will allow the company to reinvest as it seeks to make up lost ground on Google and Facebook.