Yahoo! settles dispute with Chinese partner

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.

PROMOTED VIDEO
Life and Style
ebookNow available in paperback
ebooks
ebookPart of The Independent’s new eBook series The Great Composers
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Gadgets & Tech

    Ashdown Group: SQL DBA (SSIS, ETL) - London, £60k

    £60000 per annum: Ashdown Group: SQL DBA (SSIS, ETL) - Central London, £60,000...

    Ashdown Group: 1st Line Support Analyst

    £18000 per annum: Ashdown Group: This role is a perfect opportunity for someon...

    Guru Careers: Sales Director / Business Development Manager

    £35 - 45K + COMMISSION (NEG): Guru Careers: A Sales Director / Business Develo...

    Freshtechit: Coldfusion Developer

    £50k ( neg) plus benefits : Freshtechit: ColdFusion roles available in Surrey ...

    Day In a Page

    Isis hostage crisis: Militant group stands strong as its numerous enemies fail to find a common plan to defeat it

    Isis stands strong as its numerous enemies fail to find a common plan to defeat it

    The jihadis are being squeezed militarily and economically, but there is no sign of an implosion, says Patrick Cockburn
    Virtual reality thrusts viewers into the frontline of global events - and puts film-goers at the heart of the action

    Virtual reality: Seeing is believing

    Virtual reality thrusts viewers into the frontline of global events - and puts film-goers at the heart of the action
    Homeless Veterans appeal: MP says Coalition ‘not doing enough’

    Homeless Veterans appeal

    MP says Coalition ‘not doing enough’ to help
    Larry David, Steve Coogan and other comedians share stories of depression in new documentary

    Comedians share stories of depression

    The director of the new documentary, Kevin Pollak, tells Jessica Barrett how he got them to talk
    Has The Archers lost the plot with it's spicy storylines?

    Has The Archers lost the plot?

    A growing number of listeners are voicing their discontent over the rural soap's spicy storylines; so loudly that even the BBC's director-general seems worried, says Simon Kelner
    English Heritage adds 14 post-war office buildings to its protected lists

    14 office buildings added to protected lists

    Christopher Beanland explores the underrated appeal of these palaces of pen-pushing
    Human skull discovery in Israel proves humans lived side-by-side with Neanderthals

    Human skull discovery in Israel proves humans lived side-by-side with Neanderthals

    Scientists unearthed the cranial fragments from Manot Cave in West Galilee
    World War Z author Max Brooks honours WW1's Harlem Hellfighters in new graphic novel

    Max Brooks honours Harlem Hellfighters

    The author talks about race, legacy and his Will Smith film option to Tim Walker
    Why the league system no longer measures up

    League system no longer measures up

    Jon Coles, former head of standards at the Department of Education, used to be in charge of school performance rankings. He explains how he would reform the system
    Valentine's Day cards: 5 best online card shops

    Don't leave it to the petrol station: The best online card shops for Valentine's Day

    Can't find a card you like on the high street? Try one of these sites for individual, personalised options, whatever your taste
    Diego Costa: Devil in blue who upsets defences is a reminder of what Liverpool have lost

    Devil in blue Costa is a reminder of what Liverpool have lost

    The Reds are desperately missing Luis Suarez, says Ian Herbert
    Ashley Giles: 'I'll watch England – but not as a fan'

    Ashley Giles: 'I'll watch England – but not as a fan'

    Former one-day coach says he will ‘observe’ their World Cup games – but ‘won’t be jumping up and down’
    Greece elections: In times like these, the EU has far more dangerous adversaries than Syriza

    Greece elections

    In times like these, the EU has far more dangerous adversaries than Syriza, says Patrick Cockburn
    Holocaust Memorial Day: Nazi victims remembered as spectre of prejudice reappears

    Holocaust Memorial Day

    Nazi victims remembered as spectre of prejudice reappears over Europe
    Fortitude and the Arctic attraction: Our fascination with the last great wilderness

    Magnetic north

    The Arctic has always exerted a pull, from Greek myth to new thriller Fortitude. Gerard Gilbert considers what's behind our fascination with the last great wilderness