updated 07:57 pm EDT, Tue September 18, 2012
Most of money from Alibaba deal to be returned
Following the closure of a deal in which it will sell back its stake in Chinese e-retailer Alibaba, Yahoo will return most of the cash to the company's shareholders. Yahoo will be giving out about $3.65 billion in after-tax proceeds from the deal, keeping about $650 million for the company. The company will retain control of 23 percent of Alibaba's common stock.
Yahoo CEO Marissa Mayer hailed the dividend as a way to generate liquidity in order to drive value for shareholders. The retention of common stock in Alibaba, Mayer said in a statement, will lead to a future windfall when that company makes its own initial public offering.
Yahoo previously owned 40 percent of Alibaba, but talks to began earlier this year. The divestiture is said to stem in part from previous efforts by Alibaba to buy Yahoo outright with the assistance of Softbank.