San Francisco: Yahoo Inc. has closed a $7.6 billion deal that includes selling half its stake in rapidly growing Chinese company Alibaba Group. The resolution announced on Tuesday comes four months after Yahoo and Alibaba outlined the details of the complex deal.
Alibaba is paying $7.1 billion to buy back Yahoo’s 20% stake in the company and an additional $550 million to cover revised technology and licensing agreement. Yahoo will retain a roughly 20% stake in Alibaba.
After taxes, Yahoo is expected to pocket at least $4.2 billion. Back in May, Yahoo pledged to distribute most of the Alibaba windfall to its shareholders. But after making that promise, Yahoo hired longtime Google Inc. executive Marissa Mayer to its chief executive officer. Last month, Yahoo revealed Mayer is considering holding on to the money. AP