Alibaba Group Holding Ltd., China’s largest e-commerce company, tripled first-quarter profit on surging sales as it prepares for a possible initial public offering.
Net income rose to $669 million in the three months ended March from $220 million a year earlier, Yahoo! Inc. (YHOO), which owns a stake in the Hangzhou, China-based company, said in a presentation yesterday after reporting earnings. Alibaba Q1 Net Income Triples to $669 Million [bloomberg.com]
Yahoo’s second-quarter report on Tuesday shed little light on the two most important questions that longer-term investors have right now about the company: Namely, what will its stake in Alibaba Group be worth, and when will that fast-growing Internet portal execute an IPO in Hong Kong?
If this turns into an IPO Yahoo! will stand to gain some, but they will also have to sell off a percentage.