Alibaba Group is preparing to buy out its stake from Yahoo
Recently it became known that the Chinese holding Alibaba Group, part of which is owned by Yahoo, is going to buy out a 20% stake in this company. Actually, Yahoo owns 40% of the holding’s shares, and 20%, which are planned to be repurchased, is estimated at about $ 7 billion. Most likely, the transaction will be carried out already this week.
In principle, this transaction will be beneficial to both companies. For Yahoo, this is an opportunity to replenish stocks of finance, with which the corporation has problems for a long time. For a Chinese holding, this is an opportunity to go IPO in the next year or two. Alibaba Group does not have free funds in this amount, so part of the finance will be provided by such funds as Temasek Holdings, Digital Sky Technologies and Silver Lake. Part of the required amount will be paid, in fact, in money, and part - in bonds.
It is worth noting that the partners have not yet commented on the fact of the transaction, probably leaving comments for later. Interestingly, 40% of Alibaba Group’s shares cost Yahoo only $ 1 billion back in 2005, so holding a buyout of shares by the holding is very beneficial for Yahoo. As for the Chinese holding, the management proposed such a deal for a long time, but only now the parties have reached an agreement.
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The partners have long been at odds, and in 2010, the Alibaba Group even began to use the Google search service instead of the search service of its partner. However, the parties were able to agree on a mutually beneficial transaction in the near future.
Via bloomberg
In principle, this transaction will be beneficial to both companies. For Yahoo, this is an opportunity to replenish stocks of finance, with which the corporation has problems for a long time. For a Chinese holding, this is an opportunity to go IPO in the next year or two. Alibaba Group does not have free funds in this amount, so part of the finance will be provided by such funds as Temasek Holdings, Digital Sky Technologies and Silver Lake. Part of the required amount will be paid, in fact, in money, and part - in bonds.
It is worth noting that the partners have not yet commented on the fact of the transaction, probably leaving comments for later. Interestingly, 40% of Alibaba Group’s shares cost Yahoo only $ 1 billion back in 2005, so holding a buyout of shares by the holding is very beneficial for Yahoo. As for the Chinese holding, the management proposed such a deal for a long time, but only now the parties have reached an agreement.
')
The partners have long been at odds, and in 2010, the Alibaba Group even began to use the Google search service instead of the search service of its partner. However, the parties were able to agree on a mutually beneficial transaction in the near future.
Via bloomberg
Source: https://habr.com/ru/post/144172/
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