|Yahoo! Says Alibaba Transferred Alipay Without Board Approval|
Relations between Yahoo and Alibaba continue to slide...
|Yahoo! Says Alibaba Transferred Alipay Without Board Approval [businessweek.com] |
Alibaba Group Holding Ltd. spun off its Alipay online-payment business to a different company without the knowledge or consent of its board or shareholders, Yahoo! Inc. said.
Yahoo and Softbank Corp., owners of stakes in Alibaba Group, didn’t learn until March 31 of the transfer, which happened in August, Yahoo said in a statement yesterday. Alibaba shifted ownership of Alipay to a company mostly owned by Jack Ma, chief executive officer of Alibaba Group, to comply with Chinese restrictions on foreign ownership of payment services, Yahoo said in a May 11 regulatory filing.
|Yahoo battle with China's Alibaba intensifies [reuters.com] |
Yahoo Inc's battle with Alibaba Group intensified on Friday as they issued contradictory statements over the Chinese company's transfer of a major Internet asset to its chief executive.
Analysts said the handover of Alipay, an online e-commerce payment system similar to eBay Inc's PayPal, to Alibaba Chief Executive Jack Ma has reduced the value of Yahoo's 43 percent Alibaba stake. Alibaba also operates China's largest e-commerce company, Alibaba.com Ltd.
Yahoo said it had been blindsided by the deal, while Alibaba countered that Yahoo was aware of the transaction by virtue of having a board seat, now held by former Yahoo Chief Executive Jerry Yang, who is also a Yahoo director.
Yahoo and Alibaba In Dispute Over Chinese Assets [reuters.com]
|Yahoo Inc and Alibaba Group will find it difficult to resolve their feud over the Chinese company's transfer of a major Internet asset, raising questions over how long its troubled marriage would last. |
Yahoo shares have fallen 11 percent since Tuesday when the U.S. Internet company said Alibaba had restructured Alipay, an online e-commerce payment system similar to eBay Inc's PayPal, to Alibaba Chief Executive Officer Jack Ma.
|After initially issuing contradictory statements, both companies said in a joint statement that they were in negotiations and were committed to resolving the dispute. |
[edited by: bill at 12:54 am (utc) on May 17, 2011]
[edit reason] tidy up [/edit]
|Alibaba, Yahoo Spat Highlights Angst Over Foreign Ownership [blogs.wsj.com] |
Behind the latest spat between Alibaba Group and Yahoo is a vexing irony for Alibaba founder Jack Ma: His company, one of China’s most prominent and successful Internet groups and an icon of entrepreneurial success in the country, is in at least one big respect a foreign company.
While Alibaba is headquartered in Hangzhou, and Mr. Ma and his management team are justly credited with turning it into a giant that dominates e-commerce—including online retail, online payments and transactions between businesses—it is Yahoo and Japan’s Softbank that own about three-fourths of the company, thanks to investments they made years ago that have exploded in value.
|Yahoo likely to be compensated for Alibaba's spinoff of Alipay [chinaknowledge.com] |
Yahoo Chief Executive Officer Carol Bartz said that she is making "significant" progress in talks with Alibaba Group Holding Ltd to ensure the latter to compensate for the loss resulted from Alibaba's spinoff of its online payment platform Alipay, sources reported.
Bartz said the talks have two goals, namely to maintain commercial value of Alibaba units, Alipay and Taobao, and to make sure Yahoo is appropriately compensated for the Alipay issue.
|Exclusive: Yahoo, Alibaba reach deal over Alipay: sources [reuters.com] |
Yahoo Inc has resolved a dispute with Alibaba Group over the Chinese company's transfer of its online payment system, Alipay, to Chief Executive Jack Ma, two sources close to the matter said.
The two companies reached an agreement before Yahoo's analyst meeting last Wednesday, one of the sources said. But the deal requires the consent of Softbank Corp founder Masayoshi Son who is an Alibaba board member, and he has been reluctant to come to the negotiating table, the sources said.
There's still no word on the specifics of the deal...
|Alibaba, Yahoo, Softbank settle Alipay rift [zdnet.com] |
Now that entire hubbub is history. Alipay and Taobao now have an intercompany relationship. Alipay will provide payment processing for Alibaba and Taobao. Alibaba will license Alipay intellectual property and technology services.
Yahoo and Softbank will remain Alibaba shareholders, but the Alipay settlement is designed so the three companies participate in future gains. Among the financial details:
Alipay will pay Alibaba a royalty and software technology services fee of expense reimbursement and 49.9 percent share of pre tax income.
Alibaba will get no less than $2 billion and no more than $6 billion in proceeds from any Alipay initial public offering or liquidity event.
All sides maintained that the deal was good for their shareholders.