Feeds

Biz bazaar Alibaba goes private, watches shares soar

Firm exits market while mulling Yahoo! stake slurp

Internet Security Threat Report 2014

Shares in China's Alibaba.com jumped 43 per cent today when it announced it was going private.

Parent company Alibaba Group said it was going to pay shareholders HK$13.50 for their stocks, a premium of around 46 per cent on the last closing price before the announcement of HK$9.25.

Shares have since spiked to HK$13.20 as investors look to turn a quick profit.

Rumours of Alibaba.com coming off the market have been closely aligned with the rumoured negotiations between Alibaba Group and Yahoo!, which owns a 43 per cent stake in the dotcom.

However, Alibaba made it clear in its filing with the Hong Kong Stock Exchange today that taking itself private did not hinge on its ability to strike a deal with the struggling US-based Yahoo!

"The offeror has been engaged in discussions with Yahoo! regarding the possibility of restructuring Yahoo!’s holdings in the offeror. These discussions may or may not result in an agreement and, accordingly, the possible Yahoo! transaction may or may not proceed," the filing read.

"The scheme [to take the site private] will not be conditional on completion of the possible Yahoo! transaction, nor will the offeror enter into any agreement relating to the possible Yahoo! transaction that is conditional on the scheme becoming effective.

"A further announcement will be made by the offeror and the company if and when appropriate," it added.

Although going private is not dependent on Alibaba taking back control of the Yahoo! stake, a canned statement from the firm on the scheme is full of chat about their "transitional" phase and "shifts in business strategy".

“With this offer, we provide our shareholders a chance to realise their investment now at an attractive cash premium rather than waiting indefinitely during this period of transition,” Alibaba Group CEO Jack Ma said.

And of course, going private means that the site is no longer answerable to its shareholders, which will grant it greater freedom to make decisions - such as buying back the Yahoo! stake.

It also means that Alibaba can look at long-term development, rather than having to turn a good profit every year to keep its shareholders happy - in other words, it can spend lots of money now on stuff it reckons will be good for the company eventually.

“Taking Alibaba.com private will allow our company to make long-term decisions that are in the best interest of our customers and that are also free from the pressures that come from having a publicly listed company,” Ma said. ®

Reducing the cost and complexity of web vulnerability management

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Protecting users from Firesheep and other Sidejacking attacks with SSL
Discussing the vulnerabilities inherent in Wi-Fi networks, and how using TLS/SSL for your entire site will assure security.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.