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NEW YORK (AP) — Yahoo Inc. is working to sell part of its ownership stake in Alibaba, a deal that could be worth between $4.8 billion and $8 billion, according to media reports.For months, the two companies have been seeking a way for China’s largest e-commerce company to buy back some Yahoo’s ownership. The Sunnyvale, Calif. company acquired a 40 per cent stake in Alibaba Group Holding Ltd. in 2005.
In February, a proposed $17 billion tax-free asset swap came undone. But on April 17, Yahoo CEO Scott Thompson said on an earnings conference call that his company was continuing to pursue active discussions.
“We are currently exploring a simplified transaction structure which, if executed, would provide greater certainty of closing to monetise a portion of our Alibaba stake,” he said at the time.
Now, the two companies are close to a new deal, according to The Wall Street Journal and Reuters. Yahoo would sell 15 per cent to 25 per cent of the company back to Alibaba. This time, there would be tax implications.
Yahoo spokeswoman Amanda Pires would only reiterate what was said on thanks April 17 She declined to comment further.
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