Alibaba Closes $7.6 Billion Yahoo Buyback Deal

By Tuesday, September 18, 2012 0 , Permalink 0

The $7.6 billion deal involves Alibaba buying back its shares from Yahoo which were initially bought by the then CEO of Yahoo, Jerry Yang, about 7 years back. After the tax cuts Yahoo would be pocketing somewhere around $4.5 billion.

It is evident from a regulatory filing that Yahoo is not intending to give any of the $4.5 billion it’s going to make from the deal to its shareholders through either stock buyback or dividends notes All Things D.

Jack Ma, Chairman and CEO of Alibaba Group said, “The completion of this transaction begins a new chapter in our relationship with Yahoo!”

“I look forward to working with Marissa Mayer and her team in our continued partnership,” he added.

Find the Press Release here [PDF].