The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Alibaba clicks with Yahoo

Yahoo's acquisition of a major stake in Chinese e-commerce business Alibaba looks like another example of a US internet firm muscling its way into a dominant position in China. That might be the end result. For now, though, it's Alibaba that has the real power in the relationship. Chris Leahy reports.

Prey becomes predator

CEO and founder of
Alibaba.com, Jack Ma,
left, is all smiles after his
deal with Yahoo CEO
Daniel Rosensweig.




THE EFFORTLESS INSOUCIANCE with which a web browser surfs the globe makes it tempting to assume that the internet as a commercial operation is as disdainful of borders. The reality is quite different, as many big US online companies are finding to their cost. No more so than in China, where all the top web destinations remain homegrown.

The difficulty of cracking what has turned out to be an idiosyncratic and unpredictable market, despite the dollars available, is one reason for Yahoo's deal with Alibaba, China's leading e-commerce business.

The headlines boast that, for $1 billion cash, Yahoo will acquire a 40% stake in Alibaba. It sounds straightforward, but there is a lot more behind the investment, as John Chi, managing director of Seraphin Capital, a boutique merchant bank that advised Alibaba, explains. "Alibaba will acquire all of Yahoo's businesses in China: that's search, portal, email, instant messaging and downloads," he says. "Plus, Alibaba gets the exclusive rights to Yahoo's technology and brand name in China."


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree