Yahoo Selling Half of Its Stake in Alibaba for $7.1 Billion
(NEW YORK) -- In a decision that may satisfy its shareholders, Yahoo has reached an agreement with Alibaba to sell half of its stake in the Chinese e-commerce group for over $7 billion.
Under the move, Yahoo would receive $6.3 billion in cash and up to $800 million in Alibaba preferred stock.
The deal will enable Yahoo to return cash to unhappy shareholders who have been angered by the sharp drop in their shares.
"Today's agreement provides clarity for our shareholders on a substantial component of Yahoo!'s value and reaffirms the significance of our relationship with Alibaba," Yahoo Interim CEO Ross Levinsohn said in a statement Sunday. "We look forward to continued collaboration with the Alibaba team on business initiatives as we explore joint opportunities for growth and benefit from Alibaba's future.
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