Reuters: Global Markets: Yahoo shares gain on Alibaba stake sale

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Yahoo shares gain on Alibaba stake sale May 21st 2012, 12:46 Tweet Share this Email Print Related News Wall Street rises at open after worst week of year 9:39am EDT Alibaba buys back 20 percent stake held by Yahoo for $7.1 billion 7:57am EDT CORRECTED-Alibaba in talks to raise $2.3 bln equity for Yahoo deal-sources 3:14am EDT Historic Facebook debut falls short of expectations Fri, May 18 2012 Yahoo shares climb on report Alibaba deal near Fri, May 18 2012 Analysis & Opinion A new challenge for Zuckerberg Facebook: The smart money exits Related Topics Hot Stocks » Asian Markets » The Yahoo! offices are pictured in Santa Monica, California April 18, 2011. Credit: Reuters/Mario Anzuoni Mon May 21, 2012 8:46am EDT (Reuters) - Yahoo Inc (YHOO.O) shares rose 6 percent in premarket trading after Alibaba Group agreed to buy back up to half of the U.S. company's 40 percent stake in the Chinese Internet giant for $7.1 billion. The deal also clears the way for an initial public offering of the company founded by Chinese entrepreneur Jack Ma that may in turn help Yahoo realize greater value for its remaining stake, Evercore Partners said in a research report. Yahoo, which has come under fire from shareholders for failing to take aggressive action to reverse a decline in advertising revenue in the face of competition from Google Inc (GOOG.O) and Facebook (FB.O), will hand most of the sale proceeds, after tax, to its stockholders. The share repurchase is massive enough that Yahoo shareholders should benefit meaningfully in the short-term, and the path to an IPO for Alibaba could drive additional upside in the longer term, brokerage Stifel Nicolaus said in note. Yahoo shares were up 93 cents at $16.35 in trading before the bell on Monday. (Reporting by Supantha Mukherjee in Bangalore; Editing by Sreejiraj Eluvangal) Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints Comments (0) This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

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