Monday, May 21, 2012

Yahoo Sells Alibaba Stake

Sunnyvale-based Yahoo said over the weekend that it is selling its stake in Alibaba, a deal expected to provide the firm with approximately $7.1 billion. The deal is made up of $6.3 billion in cash, plus up to $800M in Alibaba preferred stock. The shares represent up to one-half of its stake in Alibaba, or approximately 20 percent of Alibaba's fully diluted shares. Yahoo said it intends to return "substantially all" of the proceeds to its shareholders.