Ali Group announced a $ 7.1 billion from Yahoo to buy back 20% stake in

May 20, according to foreign media reports, informed sources said that Alibaba has close to a deal with Yahoo Yahoo about 20% of its shares held by the repurchase price of $ 7 billion, and the earliest possible time in Asia announced tomorrow morning this agreement.

Informed sources said on condition of anonymity, through the repurchase of shares may Alibaba pave the way for an initial public offering (IPO) in the next 18 months. The source said that Alibaba shareholder Temasek Holdings (Temasek Holdings Pte. Ltd.), Digital Sky Technologies (Digital Sky Technologies), Silver Lake Investment Group, Silver Lake, with the help of plans to use its cash held and to raise the repurchase of the funds needed through loans.

More than a year, Alibaba has been trying to repurchase Yahoo held by some of its own shares, especially in the former Yahoo CEO Carol Bartz (Carol Bartz) to step down in September last year, Alibaba has stepped up efforts . U.S. investment firm Stifel Nicolaus analyst Jordan Rohan Jordan Rohan said, Yahoo's holdings of shares of Alibaba damage its foothold in China, the world's largest Internet market, while also making it easier to be acquired.

Rohan said in a research report: Yahoo shareholders, repurchase of shares of Alibaba, and subsequently seek IPO is a clear positive, because previously many people skeptical about whether Yahoo's sale of Chinese assets. In addition, shares held as Yahoo's Alibaba to reduce Yahoo privatization funds required is also reduced. "

Bartz's efforts

Informed sources said Yahoo in the past on the sale of shares close to a deal, but ultimately fall short of the transaction is still possible to be postponed. Yahoo holds a 40% stake in Alibaba, Yahoo reduction of half of its holdings of Alibaba shares in accordance with the program is currently being discussed.

Bartz as Yahoo CEO, Yahoo and Alibaba, the negotiation of the sale of shares once progress, but still failed 2010 negotiations. Yahoo in 2005, with $ 1 billion, and Yahoo China, ownership costs, and get a 40% stake in Alibaba.

In January 2010, Alibaba said Yahoo Google for "reckless act", first made public two cracks. At that time, Google has a dispute with the Chinese government censorship problems.

In May 2011, Yahoo said Alibaba spin off its online payment service, without notice to shareholders of the cracks of the two companies further expanded. Yahoo said that it unknowingly, Alibaba its Alipay department transferred to another company, while most of the company shares held by Alibaba CEO Jack Ma.

According to technology blog AllThingsD reported on May 17, Yahoo held a Board meeting to discuss the transaction, and consider the sale of shares to shareholders as dividends. Reported that Alibaba enterprise valuation of $ 35 billion, this transaction could be worth up to $ 7,000,000,000. The report also said that after the IPO of Alibaba, Yahoo may sell its shares held by.

Alibaba Group, stressed that the repurchase of Yahoo shares and privatization are two things, the two were not the premise of the privatization plan is not the Yahoo transaction may be completed as a prerequisite for the Yahoo transaction would not complete the privatization planas a prerequisite. So far, the IPO of Alibaba Group has no specific plans and no timetable for the listing decision on the listing of the appropriate time in the future will be the board of directors of Alibaba Group.

The two sides also agreed to modify the existing technology and intellectual property license agreement, after the adjustment, the Alibaba Group, will Yahoo a one-time cash payment of $ 550 million as royalties, but this obligation will be listed in the four years after the Alibaba Group, both what early time point of termination. As to modify the technique of the copyright agreement, Alibaba Group also agreed to be part of the patent granted to Yahoo in regions outside of China.

The above transactions do not need the approval of the relevant regulatory authorities or shareholders, but also does not include agreement outside of the other conditions attached.