Yahoo has announced that they are selling half of what they hold in Alibaba to the company for around USD 7.1 billion.
Yahoo owned around 40% of Alibaba. After this deal it would fall down to around 20%.
The deal would also allow Alibaba to consider launching an IPO in the near future.
Yahoo would get USD 6.3 billion in cash and up to USD 800 million in Alibaba preferred stock.
This deal is going to help Yahoo as they get the much needed cash infusion. They would get the resources to make acquisitions to boost their products and services portfolio.