The online giant Alibaba from China has expressed its desire to purchase all of the struggling online services based company Yahoo, whose stakes are falling day by day. Jack Ma, CEO Alibaba shown this interest at the China 2.0 conference at Stanford University last friday.
At present, Yahoo is also having 40% stake in the Alibaba, but the relation between both these companies has always been contentious. The only choice to get the shares held by Yahoo back is to purchase Yahoo itself and that may be one of the reason behind this disclosure. For now, there is no comment from Yahoo on this statement of Jack Ma.
Earlier, former Yahoo CEO Carol Bartz and Jack Ma had a dispute over ownership of AliPay, an online payment unit similar to eBay-owned PayPal. In May, Yahoo disclosed that Alibaba has handover 100% of AliPay shares to a new entity controlled by Jack Ma.
On the other hand, if we see the future of Yahoo, there have been a huge sliding of Yahoo shares in last few months as the only option for Yahoo shareholders to earn profit was through service like AliPay which had to be executed by both Yahoo and Alibaba but after the AliPay event, this hope was diminished. Yahoo the CEO Bartz was also fired and the only option for Yahoo seems to lie in selling Yahoo. Yahoo's online services have already been hampered by Google and its online publishing services is also being severely harmed by Facebook. In 2008, Microsoft has offered $47 billion to purchase all of Yahoo and with time this value also goes down. In short, nothing is going the right way for Yahoo.
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