Feeds

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

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

Beginner's guide to SSL certificates

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. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
Lawyers mobilise angry mob against Apple over alleged 2011 Macbook Pro crapness
We suffered 'random bouts of graphical distortion' - fanbois
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
Feds seek potential 'second Snowden' gov doc leaker – report
Hang on, Ed wasn't here when we compiled THIS document
Verizon bankrolls tech news site, bans tech's biggest stories
No agenda here. Just don't ever mention Net neutrality or spying, ok?
Inside the EYE of the TORnado: From Navy spooks to Silk Road
It's hard enough to peel the onion, are you hard enough to eat the core?
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
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?
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.
Mitigating web security risk with SSL certificates
Web-based systems are essential tools for running business processes and delivering services to customers.