As China’s economy prepares to explode, technology businesses are scrambling to gain a foothold there, with Yahoo taking a 40 per cent stake in China’s Alibaba.com.
It’s part of a strategic partnership between the two Internet companies, a company official said yesterday in Beijing.
As part of the deal, Yahoo will pay $1 billion in cash for a 40 per cent stake in its Chinese partner. In addition, Yahoo will transfer all of its Chinese businesses, which will continue to operate under the Yahoo brand, to Alibaba.
Yahoo also takes 35 per cent of Alibaba’s voting shares.
“This is Yahoo getting much bigger in China," said Yahoo chief operating officer Daniel Rosensweig.