Yahoo sold half of its 40 percent share in the Chinese e-commerce heavyweight
Yahoo sold about half of its 40 percent share in Alibaba Group, the Chinese e-commerce giant, the companies said Tuesday.
The deal closed four months after both companies announced a plan for Yahoo, which received about $6.3 billion in cash and $800 million in preference shares, to reduce its stake in the Hangzhou, China-based e-retailer.
Alibaba also paid Yahoo $550 million in cash for a clause in the contract amending a license for some of the Silicon Valley titan's technology and content.
"The completion of this transaction begins a new chapter in our relationship with Yahoo," Jack Ma, chairman and CEO of Alibaba, said in a statement. "We are grateful for Yahoo's support of our growth over the past seven years, and we are pleased to be able to deliver meaningful returns to our shareholders including Yahoo."
Yahoo CEO Marissa Mayer had said she planned to follow through on a promise by her predecessor interim-CEO Ross Levinsohn to return "substantially all" proceeds from the transaction back to shareholders. But she appeared to reneg on that promise last month, saying she was "rethinking" the plan.
The deal was financed with $2 billion from a group of international banks — Australia and New Zealand Banking Group, Barclays Bank, Citi, Credit Suisse, DBS Bank, Deutsche Bank, Mizuho Corporate Bank, Morgan Stanley and China Development Bank.
Yahoo still will own about 23 percent of Alibaba, worth about $8.1 billion — about 43 percent of the American tech company's $18.9 billion market value.
Yahoo's share prices climbed slightly in trading Tuesday, closing at $15.89.