Yahoo! Inc. (YHOO) is in talks to sell about 20 percent of Alibaba Group Holding Ltd. for about $7 billion, a deal that would cut by half its stake in China’s largest e- commerce provider, a person with knowledge of the matter said.
Alibaba Group, which has been trying to buy back the stake in itself for more than a year, may announce a deal as soon as next week, said the person, who asked not to be identified because the matter is private. Yahoo has come close to selling the stake in the past and failed, and it may not reach an agreement this time either, the person said.
Yahoo and Alibaba Group have finally reached an agreement for the Silicon Valley Internet giant to sell back half its stake in the Chinese Web company in a $7 billion deal. The taxable share sale agreement, which is now being approved by both boards, is part of a larger and more complex arrangement, which will also include a multibillion-dollar share buyback by Yahoo and an eventual IPO of Alibaba.