Yahoo has sold their Alibaba shares back to the the Chinese group.
September 19, 2012- Yahoo(YHOO) have now sealed a deal where by the Chinese group Alibaba have bought back their shares previous sold to Yahoo.
The sale back to the original seller is said to be given Yahoo over $3 billion dollars. Although the dealings of the Alibaba shares sale has been known amongst shareholders for a while. However, what with the new appointment of Marissa Mayer, many were concerned as to what would happen with the $3 billion the company would earn. Mayer, formally an executive at Google, made a statement last month where she announced that the company’s business strategy was being ‘reviewed’. Whilst some feared that this meant she would be holding onto the billions for Yahoo investments, such as acquisitions, the shareholders were largely relieved when it made known that the money earnt would be distributed amongst shareholders.
Mayer’s payout to shareholders is probably due to a decision certain that was made in the best interests for the company. Investors include Daniel S. Loeb, the hedge fund manager and Yahoo board member who currently holds around 6% stake in the company.
In a statement following the transaction, Mayer said, “This yields a substantial return for investors while retaining a meaningful amount of capital within the company to invest in future growth.”
Alibaba’s chairman and chief executive, Jack Ma, added, “The completion of this transaction begins a new chapter in our relationship with Yahoo. We are grateful for Yahoo’s support of our growth over the past seven years, and we are pleased to be able to deliver meaningful returns to our shareholders including Yahoo.”
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