Feeds

Alibaba! suspends! shares! amid! Yahoo! stake! buzz!

Chinese biz counts readies to buy back web biz's share

Intelligent flash storage arrays

Alibaba.com has suspended its shares on the Hong Kong market, pending news from its parent company Alibaba Group, which reportedly wants to buy back Yahoo!'s stake in the company.

The Chinese website asked the market to stop trading its stocks starting today, because it needed to sort out some stuff with Alibaba Group.

"The board of directors… announces that, at the request of the company, trading in the shares… will be suspended… pending clarification of speculation in relation to a transaction involving the controlling shareholder of the company, which may or may not impact the company and which may be potentially price sensitive," Alibaba.com said in a filing with the exchange.

That "transaction" is reportedly raising the necessary finance to buy back the share in the website that Yahoo! currently holds.

The group, according to people in the know who have been talking to Reuters, is in the middle of raising a $3bn loan from around six banks to finance the deal.

The grinding rumour mill was also theorising that the parent group might be thinking about delisting once it got its stake back, which helped propel Alibaba.com's shares up 5.47 per cent on Wednesday, to close at HK$9.25 (75.2 pence).

Yahoo!, once a web giant, has been watching its advertising revenue leak away to new firms like Google and Facebook and has come under huge pressure from its shareholders to shake things up. Their demands have resulted in the firm changing CEOs, having its chairman and three directors step down and has also seen co-founder Jerry Yang, who looked like he would cling on no matter what, resign. However, Yahoo! has yet to do anything about the sticky problem of falling revenues leading to not a lot of cash to fund a turnaround.

Much of the speculation about what Yahoo! might do to pick itself up has revolved around its Asian assets which are still valuable: these include the stake in Alibaba.com and a part of Yahoo! Japan which Yahoo! launched in partnership with Softbank Corp.

If Yahoo! sells its Asian assets to its Asian partners, it could raise enough money to try to do something about its ailing US business.

However, there have also been rumours that Alibaba and Softbank are thinking about teaming up with some private equity firms to buy all of Yahoo!

Alibaba.com didn't give any further information in its filing, but those "familiar" people told the Wall Street Journal that the bank loans were due to be finalised this month. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.