Transaction completed: Alibaba buys back half of Yahoo’s shares

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Alibaba has as agreed in May half of its previously held by Yahoo shares repurchased. It ultimately paid $ 7.3 billion for it. Alibaba CEO Jack Ma said: “The completion of this transaction opens a new chapter in our relationship with Yahoo.”

 

Alibaba had for years planned a buyback, which is an important part of his strategy for a proposed initial public offering. Even a takeover of Yahoo was considering and by working with lobbyists in Washington DC also prepared , but could not seem to be funded.

It pays the purchase price , according to Reuters now by $ 6.3 billion in cash and preferred shares to the value of $ 800 million of Alibaba Group. To compensate for an imbalance in the cross-licensing agreement for intellectual property of the two companies, Alibaba pays an additional one-time $ 550 million.

Yahoo will keep after taxes $ 4.3 billion left in cash, of which 3 billion it distributes to shareholders. This sum is in addition to the $ 646 million that Yahoo has in the form of buybacks already paid for the benefit of shareholders.

According to Reuters, is Yahoo. Still owned 23 percent of the ordinary shares of Alibaba His entry is returned seven years: In 2005, it had sold its China business to Alibaba and received one billion U.S. dollars and 40 percent of Alibaba’s shares.

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