Alibaba in Yahoo! Mega Deal


September 22, 2012

China’s Alibaba Group, a consumer Internet company, raised USD 7.6 billion to buy back 20% of its shares from US-based Yahoo, according to AllThingsDigital in a report that included the press release. The deal will net Yahoo around USD 4.5 billion after taxes. According to the article Yahoo invested USD 1 billion into Alibaba seven years ago. The completion of the USD 7.6 billion transaction caps off a total of more than USD 12 billion in M&A and financings undertaken by Alibaba Group in the past 12 months when private equity investors, Silver Lake, DST Global, Temasek and Yunfeng Fund invested USD 2 billion in Alibaba Group to provide liquidity to the company’s early investors and employees. It has also delisted from the Hong Kong stock exchange and currently has capital on hand of USD 3 billion.

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