China’s Alibaba Buys Back Half of Yahoo’s Stake
Alibaba said it paid Yahoo about $6.3 billion in cash and $800 million in preferred shares in Alibaba Group. It also made a one-time cash payment of $550 million in connection with an amendment to the two companies’ intellectual property license agreement.
Separately, Yahoo said it will return to shareholders $3 billion of the $4.3 billion of after-tax proceeds from the sale. This is in addition to the $646 million downpayment that it has already returned to its shareholders through buybacks.
Yahoo continues to own about 23 percent of Alibaba’s common stock, valued at $8.1 billion, the U.S. internet company said. Together with preferred stock, its stake is valued at about $8.9 billion, Yahoo said.
Yahoo owned about 40 percent of Alibaba Group before Tuesday’s transaction.