Yahoo has 40% stake of Alibaba Group. According to News from Beijing on 18th April, Yahoo CEO Scott Thompson said on a post-earnings conference call with the Street this afternoon that the company actively talks with Yahoo on a potential transition involving Yahoo’s stake in Alibaba.
But he indicated at the same time that the company is still nowhere close to selling its stake in Yahoo Japan to partner Softbank. The discussion was in difficulty when referring to stake value. Thompson thought that any transaction value must be coordinated with the profits of Yahoo and shareholders. He expressed that he couldn’t offer more details in the a post-earnings conference call .
Yahoo in late trading is up 44 cents, or 2.9%, to $15.45.
In recent months, Alibaba announced that they would quit the stage of HKex in the near feature. A few weeks ago, the CEO Jack Ma released his letters to shareholders in Ali B 2B annual report. He hoped his shareholders supported the privatization decision and expressed that the company would make big changes in the future.
In the report, Jack Ma referred the difficulty of the company:
1. The increasing cost of material, exchange rate as well as labour.
2. European debt crisis and slow recovery of American economy lessen oversea demand on China products. Small to medium business struggles to survive.
3. Dishonest suppliers’ issue last year makes the company lose Chief CEO David and COO.
According to Jack Ma’s opinion, Alibaba B2B needed complete transformation and upgrade for ensuring continuous development. That’s why company decided Privatization. Furthermore, the report also referred that the transformation might influence company profits as well as shareholders’ income because of its large scale, complexity and wide coverage.
In 2011, Alibaba income increases 15.5% and net profit was 171,000,000 while its paid member decreased 5.4%.
Jack Ma Introduction from Wikipedia:
Born Yun Ma / 马云
September 10, 1964 (age 47)
Hangzhou, Zhejiang, China
Residence: Zhejiang, China
Nationality: Chinese
Alma mater: Hangzhou Teachers College
Occupation: Chairman and CEO, Alibaba Group
Net worth: $1.6 billion (2011)[1]
Spouse: Married
Children: 1 daughter