Rumors of negotiations between the Yahoo Internet giant! and the Chinese online store Alibaba regarding the redemption of the latter part of its own shares, which have been circulating on the network for a long time, eventually found confirmation. Last Sunday in a joint press release published on the Yahoo website!, Companies announced an agreement on the sale of part of Alibaba shares.
According to the agreement reached, Alibaba redeems back from Yahoo! About half of the existing own shares (about 20%) for $ 7.1 billion. Of this amount, about $ 6.3 billion will be transferred to the Yahoo account! and $ 800 million Internet companies will receive in the form of newly released privileged shares of Alibaba.
Despite the change in the ownership structure of Yahoo!, the parties are not going to stop cooperation. This transaction is mutually beneficial, since clarity has appeared with the preparation of Alibaba of the primary public placement of shares (IPO), and at Yahooo! Now there are free funds that can be used for other projects, as well as for the payment of dividends. The concluded agreement gives Alibaba to the ransom of the remaining from Yahoo! parts of own shares. In the case of a primary public offer, the Chinese company will be able to buy from Yahoo! A quarter of the remaining stake package at the price of an ipo or yahoo offer! will put up promotions for sale on the exchange during an IPO.
Recall that 40% of Alibaba shares company Yahoo! I bought in 2005 for $ 1 billion. In addition, Alibaba received the Chinese unit of the Internet giant Yahoo! China.