Yahoo is finally ready to sell part of its stake in Chinese Internet giant Alibaba, Kara Swisher at All Things D reports.The long-rumoured deal could be announced as soon as Monday, says Swisher.
When it is finally announced, Swisher reports Yahoo will sell half of its 40% stake in Alibaba for $7 billion.
After it pays taxes, it will spend almost all of the money on stock buybacks.
As part of the transaction, Alibaba has agreed to move towards an IPO. During the IPO Yahoo will sell a quarter of its remaining stake in the company. It will then have 10% of the company.
This is the first big move of the Ross Levinsohn era, but he had nothing to do with it. Negotiations have been led by CFO Tim Morse, but the new board has to approve the deal and it is expected to do so.
Yahoo’s shares are up 6% in pre-market trading on this news.
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