Alibaba Will Spend $7B To Buy Back Yahoo's Stake

Law360, New York (May 21, 2012, 12:58 PM EDT) -- California-based Yahoo Inc. has agreed to sell half of its 40 percent stake in Chinese business-to-business online platform Alibaba Group Holding Ltd. back to the company for about $7.1 billion, both parties said Sunday.

Yahoo said the two agreed to a staged so-called value realization plan for Yahoo's stake in Alibaba that would provide the Chinese company with additional liquidity.

The first step of the plan is for Alibaba to repurchase 20 percent of the company from Yahoo with a floor valuation of roughly $35 billion....
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