Yahoo!, Alibaba and Softbank Come to Agreement over Alipay Dispute

Alibaba Group, Yahoo! Inc and Softbank reached agreement over the controversial transfer of Alipay to a company controlled by Jack Ma, the founder and CEO of Alibaba. Under the agreement, Alibaba will receive no less than $2 billion and no more than $6 billion in proceeds from an IPO of Alipay or other liquidity event or 37.5% of the total equity value of Alipay, and it will continue to participate in Alipays future financial performance.

Also, according to the agreement, Alipay will continue to provide payment processing services to Alibaba Group and its subsidiaries including Taobao. Alipay claims to be the largest third-party payment solution in China, while Taobao is the largest domestic ecommerce platform.

The deal ends a public dispute among Yahoo, Softbank and Alibaba over Yahoos accusation of Jack Ma stealthily transferring Alipay to an entity owned by Jack Ma without notifying other shareholders.

Yahoo! CEO Carol Bartz said after the settlement that this is a good outcome for Yahoo! and for our shareholders, as well as all the parties to this agreement. Alibaba Group and its management team have an impressive track record of value creation and we look forward to participating in Alibaba Groupsand Alipayscontinued success. While Jack Ma remarked that this agreement is good for Alibaba Group and its stakeholders, including customers, employees and shareholders. Most importantly, Alipay was able to secure the license it needed to continue operating.

Yahoo! owns 43% of Alibaba. To man! y invest ors, Yahoos stake in Alibaba is even more valuable than Yahoos own online-advertising business. Thats why the transfer rattled Wall Street after Yahoo! disclosed it in May of this year. Although the dispute seems to be settled, analysts still concerned that Yahoo appears to become a forced seller of one of its key Asian assets.

Related posts:

  • Alibaba's Plan for Yahoo's Share
  • More Trouble For Alipay? Chinese Banks To Compete Into Online Payment Space
  • Yahoo China, Might Be The Next To Say Goodbye



    • Comments

    Post a Comment

    Popular posts from this blog

    China Watch: Magical New Maglev, Fire the Ambassador?

    Image
    A list of what the Wall Street Journal’s reporters in China are reading and watching online, periodically updated throughout the day. (NOTE: WSJ has not verified items in the ‘News’ section and does not vouch for their accuracy.) Last updated: 7:22 pm Beijing time. NEWS: Chinese scientists at Southwest Jiaotong University have developed a model maglev train that runs in a vacuum tube and can travel as fast as an airplane, the Global Times reports . Whether it will ever be put to use is another question, with one expert quoted in the story calling the train “complete scientific fantasy.” The first of two planes sent to retrieve up 480 Chinese nationals stranded in Egypt has landed in Beijing, Xinhua reports . Meanwhile, Hainan Airlines today dispatched another plane to pick up some of the 300 or so who remain in Egypt. It’s not clear from the reports if all of them will fit on the third plane. CNET interviews theater/tech geek Mike Daisey, creator of “The Agony and the
    Keep reading

    Live Blog: GMIC G-Startup Competition 2011

    Image
    Technode team today is covering Global Mobile Internet Conference, both in Auditorium 1 with keynotes speakers including Charles Chao (CEO of SINA), John Liu (Google China) and in Auditorium 2 with G-Startup Competition. We will be live-blogging (and live-tweeting) G-Startup Competition here. And reporting in more details on keynotes and various interviews afterwards. Stay tuned and follow us on @technodechina #TheGMIC #gstartup ! Related posts: G-Startup Competition Prizes Announced, So Apply Now! Mobile Blog Blogging anywhere and anytime Global Mobile Game Awards at GMIC2011 Submit Your Mobile Game!
    Keep reading

    Chinese Pinterest Huaban.com Grabs Money and Attention

    Image
    Out of all the Chinese Pinterests we mentioned earlier , Huaban (, or petals) is decidedly the one that stands out from the crowd to receive US$ more than one million in Series A round of funding from KPCB, less than ten days after the website went online. The Hangzhou-based service was crafted by the startup behind Yupoo , one of the earliest and best Flickr-clone in China founded about 7 years ago. With exact the same idea, features and even web design and layout, Huaban let users collect (just like Pin with Pinterest) pictures by uploading local files or grabbing one from existing webpage. You can recollect (like Repin) whatever attractive to you and save them onto your Huaban (like board) and Like pictures collected by other users. Moreover, you can create boards under different categories to organize all the pictures you collected. Pinterest per se has seen huge growth with rapid rising traffic in the States, the site has 3.2 million UV monthly with growth rate over 100%, topped
    Keep reading