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: China's Xiaomi raises more than $1 bn in funding

add to favorites email to friend print save as pdf

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

As dust clears, what's next for Sony?

14 minutes ago

The Sony hacking attack continues to deliver more dramatic plotlines than any fictional movie, but meanwhile the movie studio must move forward and tackle the next steps in minimizing the mess. Will Sony ...

It's down to the wire for online shopping

3 hours ago

As the holiday shopping season winds down, FedEx, UPS and online retailers are using the last few days to try to avoid the problems that occurred last year when severe winter weather and a surge in late orders ...

China's Xiaomi raises more than $1 bn in funding

Dec 21, 2014

China's top smartphone seller Xiaomi Corp. is raising more than $1 billion in a fresh round of funding, a move which would raise its valuation above $45 billion, a report said Sunday.

Why the Sony hack isn't big news in Japan

Dec 20, 2014

Japan's biggest newspaper, Yomiuri Shimbun, featured a story about Sony Corp. on its website Friday. It wasn't about hacking. It was about the company's struggling tablet business.

Sony faces 4th ex-employee lawsuit over hack

Dec 20, 2014

A former director of technology for Sony Pictures Entertainment has sued the company over the data breach that resulted in the online posting of his private financial and personal information.

Sony tells AFP it still plans movie release

Dec 20, 2014

Sony Pictures boss Michael Lynton denied Friday the Hollywood studio has "caved" by canceling the release of "The Interview," and said it still hoped to release the controversial film.

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.