Alibaba Mulls Taking Hong Kong Unit Private to Ease Yahoo! (YHOO) Transaction
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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.
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.
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