Yahoo, Alibaba Reach Deal On Alipay's Future

Law360, New York (July 29, 2011, 2:55 PM EDT) -- Alibaba Group Holdings Ltd. and its major investors, Yahoo Inc. and SoftBank Corp., announced Friday a deal clarifying Alibaba's stake in Alipay, following months of contention over the Chinese e-commerce giant's divestiture of the payment processor unit.

The agreement is a boon for Yahoo and SoftBank, which had suffered a major setback in May when Alibaba's spinoff of Alipay was revealed, greatly reducing the value of their investments in the Chinese e-commerce giant.

The deal provides for Alibaba, in which Yahoo has a $1 billion investment,...
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