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Alibaba to Reportedly Buy Back Shares Held by Yahoo
Tuesday 11/09/2010 5:38 AM ET - Sinocast
Alibaba Group is trying to buy back a 40% stake in itself held by Yahoo Inc. (Nasdaq: YHOO) to end the dispute between the two companies, according to a person in the know.
In the past weeks, Jack Ma frequently met with private equity investors, revealed an insider from certain investment bank, who has not mentioned whose solution has won the favor of Alibaba.
Earlier, rampant talks said that dozens of private equity investors and strategic partners were planning a joint acquisition of Yahoo. The potential buyers are said to be AOL Inc. (NYSE: AOL) and News Corporation.
Besides Jack Ma, the aforesaid investors are also contacting with Masayoshi Son, board chairman, president and CEO of Softbank Corporation, since Yahoo also takes a 35% stake in the company.
Insiders expect that the above investors could team up with Alibaba and launch a leverage buyout of Yahoo and then sell the shares held by Yahoo in Alibaba to Jack Ma.