Jack Ma's Chinese e-commerce firm Alibaba Group has offered around $2.5 billion to take its Hong Kong-listed Alibaba.com unit private, stressing the move was unrelated to any possible deal to buy back shares owned by Yahoo Inc.
Alibaba Group is offering investors HK$13.50 ($1.74) in cash per share to take Alibaba.com private, the same price as at the company's IPO in 2007, the two firms said in a statement late on Tuesday.
Alibaba is in a tough spot these days. Their reputation took a real shot with the amount of fraud that was taking place via their system. I see a lot of this fraudulent activity via my own account on the system. They really need to do something to police this activity.
All of that is depressing their stock value. It may take more than $2.5 billion to successfully pay off the remaining shareholders.