China's biggest e-commerce website Alibaba will acquire Yahoo!China, a person within the industry who refused to reveal his name told the Shanghai-based International Finance News.
He said Yahoo! will spend nearly $ 1 bln to acquire 35 percent of Alibaba's stakes. If succeed, the deal will become foreign-funded company's biggest acquisition in China's Internet industry.
Alibaba is now the owner of e-commerce website Alibaba.com and online auction website Taobao.com.
Alibaba will be able to upgrade its business structure through acquiring Yahoo!China. The acquisition of Yahoo!China, a portal website with leading content, search engine and mail business, will enhance Alibaba's business structure. On the other hand, this will help expand the market for Alibaba in Asia or even globally. The acquisition is beneficial to Alibaba from any perspective.
Besides handing over Yahoo! China to Alibaba, Yahoo! Inc. also needs to pay $ 1bln to Alibaba to get its 35 percent of stakes, which helps Yahoo! access China's e-commerce sector that it has not been able to enter before.
Another source says Alibaba is talking with Amazon to carry out cooperation in China. It is said the cooperation involves $ 100 mln, making Alibaba the sole e-commerce company engaging in B2B, C2C and B2C businesses.
Alibaba declined to comment on the rumors about the acquisition as the journalist with the International Finance News called for confirmation. Its PR said the company will not make any comment despite the recent numerous rumors.
By People's Daily Online