Yahoo! buys stake in Alibaba.com for big money
Search engine giant and the operators of the most popular web portal on the Internet Yahoo! have bought a stake in the Chinese website Alibaba.com for big money. The deal is worth around a billion dollars and Yahoo! would now own a 40% stake in the Chinese online giant. Both the companies addressed the media and said in a join press statement: “Yahoo is investing one billion dollars in cash to purchase Alibaba.com shares from company and other shareholders.â€
It further added: “The agreement gives Yahoo a 40 percent economic interest and 35 percent voting rights which would make it the largest strategic investor in Alibaba.” Alibaba.com employees around 2,000 staff members and is based in the in the eastern China city of Hangzhou.
They also hold the ownership of the popular Chinese auction site Taobao.com and of course operate their trading site Alibaba.com. In fact, they are also running a competing service to eBayâ€™s PayPal in the form of AliPay, which provides an alternative method of online transactions to their Chinese customers.
The company is expected to face competition in the domestic market of china in the coming days from their prime rivals in the Internet search field Google who are also considering making concrete steps in this country with their collaboration with the popular search site Baidu.com.