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Yahoo Announces Deal With China's Alibaba.com





Let's say this is an interesting deal.

From Wall Street Journal:

Yahoo Inc. said it agreed to pay $1 billion in cash and hand over its China operations to Alibaba.com Corp., in return for a 40% stake in the Chinese e-commerce company.

Yahoo said Alibaba founder Jack Ma will remain as chief executive and chairman of the Chinese company's board. Yahoo and Softbank Corp., another Alibaba shareholder, will each have a seat on the four-person board, with Mr. Ma and another company executive holding the remaining two.

Yahoo will have a roughly 40% stake in Alibaba and 35% of the voting rights, making it the largest strategic investor in the company.

"We believe China is one of the most strategic markets for any Internet company," said Jerry Yang, Yahoo's co-founder, who will represent it on the Alibaba board. Mr. Yang said the arrangement was similar to Yahoo's joint Internet venture with Softbank in Japan, in which the two companies each own minority stakes.

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