Yahoo! settles dispute with Chinese partner
Saturday 30 July 2011
US Internet firm Yahoo! and Japan's SoftBank said Friday they had reached agreement with their Chinese partners at Alibaba Group in a dispute over online payments platform Alipay.
Alibaba Group - which is 43 percent owned by Yahoo! - "will continue to participate in Alipay's future financial performance, including a future IPO or other liquidity event," the companies said in a joint statement.
Under the terms of the agreement, Alibaba Group will receive no less than $2 billion and no more than $6 billion from an IPO or sale of Alipay, which is the payment platform of Alibaba Group.
Alipay will also continue to provide payment-processing services to Alibaba Group and its Taobao marketplace, China's top online retailer, the joint statement said.
Alibaba Group is one of the most prized assets of Yahoo! and the dispute had shaken the troubled US Internet company, which was a giant in the 1990s but now faces tough competition from Google and deep investor skepticism.
"This is a good outcome for Yahoo! and for our shareholders, as well as all the parties to this agreement," Carol Bartz, chief executive of the Sunnyvale, California-based company, said in the statement.
The dispute became public knowledge in May when Yahoo! notified US regulators that ownership of Alipay had been shifted to a Chinese firm owned mostly by Alibaba chief executive Jack Ma.
Yahoo! said the transfer was done without the knowledge or approval of Alibaba's board of directors or shareholders, which also include SoftBank.
But Ma has insisted that Yahoo! and SoftBank were informed of the transfer of ownership and it was done to comply with Chinese licensing regulations.
"Over the last few months, we have worked cooperatively with our partners at Yahoo! and SoftBank to reach an agreement that serves the interests of all parties," Ma said in the statement announcing Friday's agreement.
"This agreement is good for Alibaba Group and its stakeholders, including customers, employees and shareholders. Most importantly, Alipay was able to secure the license it needed to continue operating."
The dispute had raised questions about Chinese corporate governance practices and the security of foreign investment in China.
Life & Style blogs
Alexander McQueen at auction: What makes a really great piece of fashion?
A bottle of wine a day is not bad for you and abstaining is worse than drinking, scientist claims
No female ejaculation, please, we’re British: a history of porn and censorship
Stressed nurses are 'forced to choose between health of patients and their own'
Pornhub: Kim Kardashian's sex tape is the most-watched porn video of all-time
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
Sony hack: Angelina Jolie branded 'seriously out of her mind' in further embarrassing leaked email saga
Panic Saturday: 13 million Britons spend £1.2bn – while 13 million others across the country live in poverty unable to afford food
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
iJobs Gadgets & Tech
£30000 - £35000 per annum: Recruitment Genius: An exciting opportunity to join...
Negotiable: Recruitment Genius: An IT Support Analyst is required to join the ...
£50000 per annum + 26 days holiday,pension: Ashdown Group: A highly successful...
£30 per hour: Ashdown Group: An industry leading and well established business...