Yahoo! stock climbs on report of Alibaba sale

May 18, 2012

Yahoo! stock price climbed Friday on renewed rumors that it was close to a multibillion-dollar deal to sell half of its stake in Alibaba.com back to the Chinese online shopping portal.

Yahoo! shares were up nearly four percent to $15.42 on the Nasdaq exchange by the close of trading due to unconfirmed reports that the only hurdle remaining was for the boards of the companies to sign off on the deal.

Alibaba has long expressed a desire to buy back the 43 percent chunk of the company owned by Yahoo!, but repeated attempts at working out terms have failed.

The deal, which could still be derailed, would have Alibaba buy back half of the interest Yahoo! has in the company at a value of about $7 billion, according to technology news website All Things Digital.

A move by Alibaba's to buy out Yahoo!'s stake in the Chinese Internet titan has tripped in February on the California firm's determination to sidestep taxes.

Alibaba Group chairman Jack Ma has a longstanding offer to buy all or part of the company.

Cashing out the Yahoo! share of Alibaba had been part of a turnaround plan by freshly ousted Yahoo! chief executive Scott Thompson.

Thompson was forced out on Sunday in the face of controversy about an inflated resume, resulting in a truce in a proxy war with mutinous shareholder Daniel Loeb.

As part of the settlement with Loeb's hedge fund Third Point, Ross Levinsohn became interim Yahoo! chief and Fred Amoroso took charge of the board of directors the Sunnyvale, California-based firm.

Loeb and two of his picks -- Harry Wilson and Michael Wolf -- were given seats on the Yahoo! board.

Five current board members, including director Roy Bostock and Patti Hart, stepped down instead of ending their terms at this year's annual shareholders meeting as originally planned.

Explore further: Ex-Apple chief plans mobile phone for India

add to favorites email to friend print save as pdf

Related Stories

China e-commerce firm Alibaba in privatization bid

Feb 21, 2012

(AP) -- Alibaba.com's parent company wants to take the Chinese e-commerce company private for $2.5 billion, the firms said Tuesday, part of a shift in business strategy that also includes plans to buy back a stake from Yahoo ...

Alibaba.com shares surge on privatization bid

Feb 22, 2012

(AP) -- Shares of Alibaba.com rocketed on Wednesday after the Chinese e-commerce site said its parent company made a $2.5 billion privatization bid as part of a shift in business strategy that also includes plans to buy ...

Alibaba, Softbank discussing Yahoo! bid: report

Nov 09, 2011

China's Alibaba Group and Japan's Softbank are in talks with private equity firms about making an unsolicited bid for Yahoo!, according to the Bloomberg financial news agency.

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.

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

Feb 09, 2012

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.

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.

Recommended for you

Ex-Apple chief plans mobile phone for India

5 hours ago

Former Apple chief executive John Sculley, whose marketing skills helped bring the personal computer to desktops worldwide, says he plans to launch a mobile phone in India to exploit its still largely untapped ...

Airbnb rental site raises $450 mn

19 hours ago

Online lodging listings website Airbnb inked a $450 million funding deal with investors led by TPG, a source close to the matter said Friday.

US venture investments highest since 2001 (Update)

Apr 18, 2014

Funding for U.S. startup companies soared 57 percent in the first quarter to a level not seen since 2001, as venture capitalists piled more money into a growing number of deals, according to a report due out Friday.

User comments : 1

Adjust slider to filter visible comments by rank

Display comments: newest first

Argiod
1 / 5 (1) May 18, 2012
I'm not surprised Yahoo doesn't want to continue its relationship with Ali Baba. My limited experience with this company is slow delivery, low quality goods, near impossible to make good on warranty. It'll be good to get that money back home.

More news stories

Ex-Apple chief plans mobile phone for India

Former Apple chief executive John Sculley, whose marketing skills helped bring the personal computer to desktops worldwide, says he plans to launch a mobile phone in India to exploit its still largely untapped ...

Airbnb rental site raises $450 mn

Online lodging listings website Airbnb inked a $450 million funding deal with investors led by TPG, a source close to the matter said Friday.

Health care site flagged in Heartbleed review

People with accounts on the enrollment website for President Barack Obama's signature health care law are being told to change their passwords following an administration-wide review of the government's vulnerability to the ...

A homemade solar lamp for developing countries

(Phys.org) —The solar lamp developed by the start-up LEDsafari is a more effective, safer, and less expensive form of illumination than the traditional oil lamp currently used by more than one billion people ...

NASA's space station Robonaut finally getting legs

Robonaut, the first out-of-this-world humanoid, is finally getting its space legs. For three years, Robonaut has had to manage from the waist up. This new pair of legs means the experimental robot—now stuck ...

Filipino tests negative for Middle East virus

A Filipino nurse who tested positive for the Middle East virus has been found free of infection in a subsequent examination after he returned home, Philippine health officials said Saturday.

Egypt archaeologists find ancient writer's tomb

Egypt's minister of antiquities says a team of Spanish archaeologists has discovered two tombs in the southern part of the country, one of them belonging to a writer and containing a trove of artifacts including reed pens ...