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> The deal, announced late Sunday in the U.S., will see Alibaba Group buying back the stake from Yahoo Inc.for $6.3 billion in cash and up to $800 million of Al
by bsimpson 14y ago
> The deal, announced late Sunday in the U.S., will see Alibaba Group buying back the stake from Yahoo Inc.for $6.3 billion in cash and up to $800 million of Alibaba preference shares.
I'm sure there's a sensible rational for it, but it sounds hilarious for them to be selling their stock in exchange for a bit of cash and some more stock.
- Tuna-Fish 14y agoThe preferred shares are likely callable at the option of Alibaba -- that is, they have the right to buy them back at some defined price at any point in time. They will likely exercise this as soon as they have the liquidity. It's basically just a "we'll pay you 7.1B, some now in cash and 800M later", without having to put debt on the balance sheet.