China's Alibaba completes repurchase of Yahoo stake
September 19 , 2012
China's Alibaba Group has repurchased half the stake Yahoo owned in the company for $7.6 billion as it edges closer to an initial public offering (IPO).
Alibaba paid Yahoo about $6.3 billion in cash and $800 million in preferred shares in Alibaba Group.
It also made a one-off cash payment of $550 million in connection with changes to an intellectual property license agreement.
Yahoo acquired a 40 percent stake in Hangzhou- based Alibaba in 2005 in exchange for $1 billion and ownership of Yahoo’s Chinese operations.
Yahoo still owns around 23 percent of Alibaba's common stock, valued at $8.1 billion.
Coupled with preferred stock, its stake is valued at about $8.9 billion.
Alibaba said it has the right to buy back half of Yahoo's remaining stake at the time of its planned IPO.