SUNNYVALE (dpa-AFX) - Yahoo Inc. (YHOO) intends to continue its discussions on a proposal to reduce its 40% stake in Chinese online giant Alibaba Group Holding Ltd to about 15% and sell its 35% ownership position in Yahoo Japan. The value of the transaction for the Asian assets is about $17 billion to $18 billion, the Wall Street Journal reported, citing people familiar with the matter.
The two Asian companies originally proposed it several months ago, but talks have recently gained steam after private-equity bids for a minority stake in Yahoo came in low, the Journal quoted people familiar with the matter as saying.
Softbank Corp., a large shareholder in Yahoo Japan, would take Yahoo's entire current stake in the business, the paper said citing the people.
The Journal reported that the total value of the Alibaba piece would be more than $12 billion. Yahoo would carry out an identical transaction for its entire 35% stake in Yahoo Japan, which has a market value of around $6 billion. Therefore, the total value of the sale for the Asian assets is valued at $17 billion to $18 billion.
Copyright RTT News/dpa-AFX