Alibaba Buys Back 20% Stake From Yahoo For $7.1 Billion

Alibaba Group Holding, China’s largest e-commerce provider, agreed to repurchase about a 20 percent stake in itself from Yahoo! for about $7.1 billion ahead of a potential initial public offering. Yahoo will receive at least $6.3 billion in cash and as much as $800 million in newly issued Alibaba preferred stock. At the time of an IPO, Alibaba will be required to either buy back a quarter of Yahoo’s current stake or let Yahoo sell the shares. The deal values Alibaba at about $35 billion.