Yahoo vs Alibaba

Discussion in 'The Water Cooler' started by cybercore, May 15, 2011.

  1. cybercore

    cybercore New Member

    Jul 7, 2009
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    Relations between Yahoo! and Alibaba have been rocky for some time but Bartz gave Alibaba's Ma a vote of confidence in September saying Yahoo! is "very supportive of the operational direction Jack Ma and his team are taking the group."


    Yahoo! shares extended their slide on Friday amid tensions with Alibaba Group, the Chinese e-commerce giant in which the California Internet company holds a large stake.

    Shares in Yahoo! lost 3.61 percent to close at $16.55 on Wall Street on Friday.

    Yahoo! stock began sinking on Wednesday on news that Alibaba had spun its online payment business, Alipay, out of the reach of the US-based Internet giant.

    Yahoo! filed paperwork on Tuesday notifying the US Securities and Exchange Commission that ownership of Alipay had been shifted to a Chinese company owned mostly by Alibaba chief executive Jack Ma.

    In the filing, Yahoo! said the transfer of ownership of Alipay was done without the knowledge or the approval of Alibaba's board of directors or shareholders.

    Yahoo! said the move was made in August although Yahoo! and another major Alibaba stakeholder, Japan's Softbank, were only informed of it in March.

    Alibaba rejected Yahoo!'s claims in a statement on Friday and said that the Chinese legal requirements that necessitated the change in ownership had been discussed at numerous board meetings.

    Alibaba said the move was made to "comply with Chinese law governing payment companies in order to secure a license to continue operating Alipay."

    MORE Yahoo! shares sink on Alibaba tensions - Yahoo! News

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