Printed from http://www.electronista.com

Yahoo gains $7.1B in stock, cash in Alibaba share buyback

updated 08:09 pm EDT, Tue May 22, 2012

Search engine gets $6.3B in cash, $800M in stock, more

Alibaba, a Chinese-owned e-commerce giant, has bought half of Yahoo's stake in the company through a buyback deal. The previously speculated arrangement, announced on Sunday, sees Alibaba receive half of the 40 percent stake Yahoo has in the company in exchange for $6.3 billion in cash, and around $800 million in new Alibaba preferred shares. Yahoo will also receive preferential treatment if Alibaba conducts an initial public offering, with either Alibaba buying or Yahoo selling 25 percent of the remaining stake.

An agreement to cross-license technology has also taken place, with Alibaba having the right to run Yahoo China under the Yahoo brand for the next four years in exchange for $550 million and yearly royalty payments. Previously, the companies had attempted to make a $17 billion tax-free asset swap, but the deal failed to materialize due to complications.

After a turbulent history including the recent controversy that forced out former CEO Scott Thompson controversy, the deal is the first sign of reversing fortunes, especially for investors. Yahoo shares gained 18 cents to $15.60 in Monday morning trading following the news. [via Business Week]



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Razer Kraken Pro headset

Gaming headphones are a challenge to get right, for a long list of reasons that are unique to the consumer buying them. Some shoppers ...

Patriot Aero Wireless Mobile Drive

Regardless of how large a tablet you buy, you always want more space. There's always one more movie or another album you'd cram on, if ...

Patriot Fuel+ 6000 and 9000mAh batteries

Mobile device batteries are better than they used to be, but there's always a scenario where users could use more juice. Upgrade manuf ...

Sponsor

toggle

Most Commented

 
toggle

Popular News