China's Alibaba raising $3bn for Yahoo! stake: report

Feb 09, 2012
File photo shows advertising for Chinese online marketplace Alibaba.com on the side of a taxi in Hong Kong. Alibaba plans to borrow $3 billion to buy back the stake Yahoo! owns in the company, a report said Thursday, as the struggling US Internet firm overhauls its Asia holdings.

Chinese online commerce giant Alibaba plans to borrow $3 billion to buy back the stake Yahoo! owns in the company, a report said Thursday, as the struggling US Internet firm overhauls its Asia holdings.

Alibaba, whose Hong Kong shares were suspended from trading on Thursday, is raising money from six banks and the loan is expected to be finalised this month, the said, citing unidentified sources.

gave no reason for the trading halt and its spokesman John Spelich declined to comment when contacted by AFP.

The report comes after Yahoo! on Tuesday announced a boardroom shakeup to breathe fresh life into the Internet firm that has been struggling to re-invent itself and appease disappointed investors.

Chairman Roy Bostock said he would step down from the board along with three other directors -- just weeks after , who co-founded Yahoo! and had an ill-fated stint as chief executive, resigned from all of his positions.

Bostock, in a letter to shareholders, also said Yahoo! was in "active discussions" with its partners in Asia on restructuring its holdings in the Alibaba Group and Yahoo! Japan.

Alibaba is 43 percent owned by Yahoo! and Alibaba Group chairman Jack Ma has a long-standing offer to buy all or part of the company.

Yang served as chief executive of Yahoo! from June 2007 to January 2009, during which time he and Bostock notably turned down a $47 billion from Microsoft, earning the ire of many shareholders.

Bostock and Yang have been the targets of stockholder anger as Yahoo!'s sank to about half of what it was when company leaders snubbed Microsoft's generous buyout bid.

Yang ceded the Yahoo! helm to , whose efforts to turn the company around were cut short when she was fired in September, prompting her to describe the company's board as "doofuses".

Since Bartz stepped down as chief executive, Yahoo!'s board has reportedly been looking at selling all or part of the company.

Explore further: US market lifts global tablet sales: survey

add to favorites email to friend print save as pdf

Related Stories

Yahoo! shakes up board to give firm new life

Feb 07, 2012

Yahoo! on Tuesday announced a boardroom shakeup to breath fresh life into a pioneering Internet firm that has been struggling to re-invent itself and appease disappointed investors.

Silver Lake, others eye Yahoo!: reports

Sep 16, 2011

Private equity firm Silver Lake Partners has approached Yahoo! about making a bid for the struggling Internet company, according to newspaper reports.

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.

Alibaba tells Yahoo! to decide on takeover

Oct 20, 2011

Alibaba Group Chairman Jack Ma said Thursday he expects an answer from Yahoo! within weeks to his long-standing offer to buy all or part of the US Internet giant, saying delays were hurting both firms.

Bartz blasts Yahoo! board

Sep 08, 2011

Fired Yahoo! chief executive Carol Bartz has responded to her dismissal with a characteristically salty blast at the board of directors of the Internet company.

Recommended for you

Sony's quarterly loss balloons on mobile woes

1 hour ago

Sony's losses ballooned to 136 billion yen ($1.2 billion) last quarter as the Japanese electronics and entertainment company's troubled mobile phone division reported huge red ink.

Will Apple Pay be mobile pay's kick-start?

8 hours ago

If anyone can get us to use our smartphones as wallets, it's Apple. That's what experts think about the recent launch of Apple Pay, the first mobile wallet to work on an iPhone.

Google execs discuss regulation, innovation and bobble-heads

10 hours ago

Eric Schmidt and Jonathan Rosenberg help run Google, one of the world's best-known, most successful - and most controversial - companies. They've just published a new book, "How Google Works," a guide to managing what they ...

LinkedIn reports 3Q loss but sales climb

11 hours ago

LinkedIn Corp. posted a third-quarter loss on Thursday, but its results were better than expected as revenue grew sharply, sending shares of the online professional networking service higher in extended trading.

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.