Yahoo, Alibaba present united front
NEW YORK - Yahoo Inc and Alibaba Group released a joint statement on Sunday saying they are "engaged in and committed to productive negotiations".
The companies gave few details about their talks and aimed to present a united front as tension grows between the two tech giants.
Yahoo, based in Silicon Valley, owns 43 percent of Alibaba, a powerful Internet company in China. And the relationship has been strained.
On Tuesday, Yahoo surprised Wall Street when it said that Alibaba had spun off its online payment service, Alipay. Investors, worried that Yahoo's stake in Alibaba will now become less valuable, sent Yahoo's stock downward.
The statement, released Sunday afternoon, said: "Alibaba Group and its major stockholders, Yahoo! Inc and Softbank Corporation, are engaged in and committed to productive negotiations to resolve the outstanding issues related to Alipay in a manner that serves the interests of all shareholders as soon as possible."
The statement echoed another one that Yahoo had made on Tuesday. Dana Lengkeek, a Yahoo spokeswoman, declined to comment on questions about who was involved in the negotiations or what Yahoo wants from them.
Representatives for Alibaba and Softbank, a Japanese firm that is also a longtime investor in Alibaba, didn't immediately return messages for comment.
Alibaba's success has helped bolster Yahoo as the Sunnyvale, California, company has struggled to compete with Google Inc.
The six-year investment has also been a way for Yahoo to keep a toehold in China after it and other companies, including Google, have had a hard time expanding their own businesses in the country.
In the first quarter, Yahoo's net income fell by 28 percent. The net income of Alibaba.com, the flagship company of Alibaba Group, meanwhile rose by 37 percent.
In Tuesday's regulatory filing, Yahoo said that Alibaba had spun off Alipay to another company owned by Alibaba Group's CEO, Jack Ma, to allow it to obtain "an essential regulatory license" more quickly.
Yahoo also then said it had been engaged with Alibaba and Softbank in "ongoing discussions regarding the terms of the restructuring and the appropriate commercial arrangements related to the online payment business".
Carol Bartz, a Silicon Valley veteran, became the CEO of Yahoo in January 2009. With Alipay under Ma's control, analysts believe he could have more negotiating power if Yahoo tries to sell its stake in Alibaba.
Associated Press
(China Daily 05/17/2011 page17)
