Alibaba Mulls Taking Hong Kong Unit Private to Ease Yahoo! (YHOO) Transaction
According to Reuters Friday, Alibaba Group is considering taking Alibaba.com off the public market. The move would make it easier for Yahoo! (Nasdaq: YHOO) and Alibaba to strike a multi-billion deal for Yahoo! to sell its 40 percent stake back to the Chinese e-Commerce giant.
Trading in Alibaba.com, notably, was halted on Thursday, February 2nd.
With the unit currently holding an estimated value of $13 to $14 billion, Alibaba is said to be in talks with financiers about a deal to reacquire 25 percent of its own shares from Yahoo! in a tax-free "cash rich split" deal. The deal would involve assets, cash, and bank loans. Following the transaction, Yahoo! would still hold about a 15 percent stake in Alibaba Group.
Of course, nothing is set in stone yet and any current chatter between the two companies could shift in a heartbeat.
Other units Yahoo! might get a holding in include Taobao.com and/or Alipay.
Shares of Yahoo! are indicated for a higher open Friday.
Get immediate access to market moving news and alerts with StreetInsider.com Premium - FREE TRIAL!
Trading in Alibaba.com, notably, was halted on Thursday, February 2nd.
With the unit currently holding an estimated value of $13 to $14 billion, Alibaba is said to be in talks with financiers about a deal to reacquire 25 percent of its own shares from Yahoo! in a tax-free "cash rich split" deal. The deal would involve assets, cash, and bank loans. Following the transaction, Yahoo! would still hold about a 15 percent stake in Alibaba Group.
Of course, nothing is set in stone yet and any current chatter between the two companies could shift in a heartbeat.
Other units Yahoo! might get a holding in include Taobao.com and/or Alipay.
Shares of Yahoo! are indicated for a higher open Friday.
Get immediate access to market moving news and alerts with StreetInsider.com Premium - FREE TRIAL!
You May Also Be Interested In
- Facebook (FB) Could Boost Revs with This Potential Acquisition...
- DigitalGlobe (DGI) Pops On Rumors of Higher Bid
- UPDATE: SAP's (SAP) America Unit to Buy Ariba (ARBA) for $45/Share
Create E-mail Alert Related Categories
Insiders' Blog, Mergers and Acquisitions, RumorsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
