|China's Alibaba Group may rethink Yahoo ties|
|China's Alibaba Group may rethink Yahoo ties [news.yahoo.com] |
"If Yahoo begins to compete with Alibaba for customers in China, we will have to re-evaluate our relationship with Yahoo further in light of this activity and the intentions it implies," said Alibaba Group's spokesman John Spelich.
This statement is the latest in a series of clashes between the two companies. Earlier this year, Alibaba called Yahoo reckless for the latter's comments it would stand by Google after Google threatened to pull out of China.
Yahoo also sold its stake in Alibaba.com late last year, surprising Alibaba executives near their 10-year anniversary.
An interesting article with a bit more background on the story:
|Why Yahoo! Must Reclaim China (Even If Alibaba Doesn't Like It) [businessinsider.com] |
Things were fine as long as the two companies didn't enter each other's territory: For Alibaba, this was the China market and for Yahoo , this was everywhere else. (Yahoo has a significant presence in Hong Kong, and commands more than 95% of all traffic in Taiwan through Yahoo 's acquisition of Kimo in 2000, and Yahoo founder Jerry Yang's Taiwan roots.)
But now, Yahoo is showing signs of wanting to accept advertising from Chinese SMEs in Hong Kong. On the surface, this doesn't seem like a significant move, but like everything else in China, there is more than meets the eye.
For one thing, Alibaba is moving out of the Chinese home market into other markets where Yahoo has a strong presence including India, Japan and the US.
|Yahoo CEO says no interest in Alibaba stake sale [reuters.com] |
That is what Yahoo Inc (YHOO.O) Chief Executive Carol Bartz tells the founder of Alibaba Group whenever he asks if he can buy back Yahoo's 39 percent stake in the Chinese Internet company.
Alibaba "constantly" approaches Yahoo about repurchasing its stake, Bartz told Reuters in a wide-ranging interview on Wednesday, but Yahoo has no plans to sell it.
"People are wringing their hands about what to do in the China market... this is a great way to get upside in the China market," Bartz said of the world's largest Internet market by users that has challenged rivals such as Google Inc
There's not much Yahoo would gain by selling out their share (other than some quick cash). They have no other way to get involved with the China market otherwise. That could be more lucrative down the road.
Yahoo and Alibaba may have strained relations from this whole ordeal for quite some time to come.
|After Yahoo Talks, Alibaba Says Its Buyback Bid Is Over [nytimes.com] |
Alibaba Group Holding, China’s biggest electronic commerce company, said it had “moved on” from talks to buy back shares held by Yahoo after the two sides failed to reach agreement this year.
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“We have no intention of raising this issue again,” said an Alibaba spokesman, John Spelich. Talks between the Chinese company and Yahoo about the shares ended in June, he said.
Yahoo’s 39 percent stake in Alibaba is worth $11 billion, according to estimates by Marianne Wolk, an analyst for the Susquehanna Financial Group. A Yahoo founder, Jerry Yang, was first approached about nine months ago to sell the holding, before Alibaba filed a formal proposal in May, Mr. Spelich said.