August 10, 2005
Report: Yahoo to pay $1 billion for stake in Alibaba
Yahoo would hand its Chinese operations over to e-commerce vendor
Recommend ThisYahoo Inc. is poised to pay US$1 billion to buy a 35 percent stake in Alibaba.com Corp. and hand its Chinese operations over to the e-commerce vendor, the Dow Jones Newswire is reporting, citing "a person familiar with the deal."
Alibaba, which is based in Hangzhou in eastern China, would keep Yahoo for its search engine and other aspects of its operations and would have access to Yahoo users and advertisers, the newswire quoted the source as saying. The companies have scheduled a press conference for Thursday in Beijing to detail the news, the newswire said in the report, which appeared Wednesday in the online version of The Wall Street Journal.
The move would better situate Yahoo to compete with Chinese search companies as well as with Google Inc. and eBay Inc., which are expanding in China.
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