Alibaba Takeover They Shares From Yahoo!

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The company's largest e-commerce China, Alibaba Group Holding Ltd., finally agreed to repurchase (buyback) 20% of its shares from the hands of Yahoo!. The transaction value was approximately 7.1 billion U.S. dollars.

The purchase was to use some cash. Yahoo! will acquire at least 6.3 billion in cash and the balance of U.S. $ 800 million U.S. dollars in the form of preference shares.

In its release on Monday (21/5), Alibaba also hopes to buy 25% stake in Yahoo!. The transaction value was calculated when the base price of Yahoo! stock reached $ 35 billion U.S. dollars.

Alibaba is a partner of Yahoo in China. Previously, as much as 40 percent owned by Yahoo.

Alibaba.com office lobby

Alibaba has been trying to buy back shares over a year ago. Since September 2011, the company's largest e-commerce in China has ramped up efforts to purchase these shares along with improved performance.

Analysts responded positively to this transaction. They assess the fresh funds will help Yahoo! to compete with Google Inc. again. and Facebook Inc.

"This funding will help Yahoo! to face challenges in business," said Jim Tang, technology analyst at Shanghai Securities Shenyin Wanguo

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