Alibaba is exploring plans to take its Hong Kong listed unit, alibaba.com private, according to news agency Reuters. The e-commerce giant will reportedly use bank loans and cash to buy back 25% of the company from Yahoo, leaving the American firm holding 15%, in a move to strengthen the position of founder and CEO Jack Ma.
Reuters, citing “two sources familiar with the matter”, reports that Alibaba will pay Yahoo $6bn in cash and give the firm a stake in one of its operating assets, making the transaction tax free. The sources emphasised that this was one of several options being considered by both companies, and that a deal could still be several weeks away.
Alibaba.com’s share price has seen considerable volatility since its Hong Kong flotation, as parent company Alibaba’s relationship with Yahoo soured.
