Alibaba head rejects Yahoo! protest over pay unit

May 15, 2011
Alibaba.com founder Jack Ma, seen here, said Saturday the firm's move to transfer ownership of its online payment unit was "legal and 100 percent transparent", rejecting protests by US-based Yahoo!

The head of Chinese e-commerce giant Alibaba said Saturday the firm's move to transfer ownership of its online payment unit was "legal and 100 percent transparent", rejecting protests by US-based Yahoo!

The California filed paperwork on Tuesday notifying the US that ownership of Alibaba's Alipay unit had been shifted to a Chinese company owned mostly by Jack Ma.

In the filing, Yahoo! said the transfer was done without the knowledge or approval of Alibaba's board of directors or shareholders. Yahoo! owns a 43 percent stake in Alibaba and an estimated 40 percent share of Alipay.

Yahoo! said the move was made in August although it and another major Alibaba stakeholder, Japan's Softbank, were only informed in March.

On Saturday, Ma rebutted the claims and said that the controversial transfer was done with key investors' knowledge.

"The board and shareholders including Yahoo! and Softbank Corp. are fully aware of the ownership transfer of Alipay," he was quoted as saying by Dow Jones Newswires.

His comments come after the firm issued a statement on Friday, saying the transfer was done to "comply with Chinese law governing payment companies in order to secure a license to continue operating Alipay."

"The actions taken by Group management to comply with the licensing regulations and to ensure continuation of operations are in the best interests of the company and its shareholders," the statement said.

Explore further: Samsung removes logo on smartphones in Japan

Related Stories

Yahoo! shares sink on Alibaba tensions

May 13, 2011

Yahoo! shares extended their slide on Friday amid tensions with Alibaba Group, the Chinese e-commerce giant in which the California Internet company holds a large stake.

Yahoo! shares drop as Alibaba service spins off

May 12, 2011

Yahoo! stock sank on news that Alibaba has spun its online payment business out of reach of the US Internet pioneer, which owns a large stake in China's leading online search service.

Chinese retail site, Yahoo! Japan unveil deal

May 10, 2010

China's largest retail website Taobao and Yahoo! Japan on Monday announced a new partnership aimed at increasing online shopping options for consumers in the world's number two and three economies.

Yahoo! move will impact China's e-commerce

Aug 11, 2005

Plans by Yahoo! to invest $1 billion for a 35-percent to 40-percent stake in Chinese B2B and auction firm Alibaba.com will change the competitive landscape in China's e-commerce market, analysts told United Press International. ...

Recommended for you

Germany still has some way to go to 'smart factories'

6 hours ago

Collaborative robots and intelligent machinery may have wowed the crowds at this year's Hannover Messe, but experts see German industry as having some way to go towards incorporating them on factory floors ...

Taiwan factory workers win $18 mn over cancer deaths

Apr 17, 2015

Workers from a factory in Taiwan which leeched toxic chemicals they say resulted in 200 deaths from cancer and more than 1,000 other cases of the disease won a Tw$564.45 million ($18 million) payout from US electronics company ...

Court monitor: Apple antitrust cooperation has 'declined'

Apr 17, 2015

Apple Inc.'s cooperation with efforts to improve its compliance with antitrust laws after a federal judge concluded it colluded with electronic book publishers to raise prices five years ago took on an "adversarial tone" ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.