p2pnet - rss feed: Microsoft Yahoo plans worry Chinese
p2pnet news | Politics:- Efforts by Bill and the Boyz to get their hands on Yahoo are worrying Chinese mandarins who, apparently, seem sure the deal will eventually go through.
Alibaba Group, the unfortunately named Chinese Net firm, "will seek a stronger voice for its management team in Microsoft’s talks to acquire Yahoo, Alibaba’s largest shareholder, a source said on Monday," according to Reuters.
"Based on the original agreement with Yahoo, which owns 39 percent of Alibaba, the Chinese company is in a very strong position to influence how shares would be transferred to any new owner, said the source, who is close to Alibaba," says the story, going on:
"The problem is a perception by Beijing authorities that an important Chinese firm could come under the control of Microsoft Corp, which has a reputation of using monopolistic tactics, said the source, who is familiar with a team of bankers and lawyers assembled by Alibaba to review its options."
"Foreign control of large companies in key or strategic industries is a politically sensitive issue for Beijing, which has forced many prospective buyers to cut their intended stakes or simply delayed the application process indefinitely," says the story, adding:
."Another major shareholder in Alibaba is Japan’s Softbank Corp, which owns about 30 percent of the Chinese company. Softbank also partners with Yahoo in Yahoo Japan Corp."
On August 11, 2005, "Yahoo! announced that it would purchase a 40% stake in the company for US$1bn plus Yahoo!’s Chinese assets (worth about US $700M)," says the Wikipedia, going on:
"Alibaba will take charge of Yahoo! China, and Alibaba’s founder Jack Ma will remain. As of January 2007, the Alibaba Group is made up of 5 sub-companies:
1. Alibaba.com: English language global trade website serving small and medium-sized enterprises.
2. Taobao.com: Online auctions web site for customers.
3. Yahoo! China: Chinese Web search engine.
4. Alipay: Online payments web site, processing mainly payments within China.
5. Alisoft: Provider of web services to the Chinese Small and Medium-sized Enterprise marketplace.
6. Alimama: Online advertising exchange, which allows web publishers and advertisers to trade online advertising inventory.
Also See:
get their hands on Yahoo - Jerry Yang letter to Yahoo shareholders, February 14, 2007
Reuters - Chinese Investors Weigh in on Microsoft’s Yahoo Bid, February 18, 2007
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