News Summary: Yahoo selling half of Alibaba stake

AP News
|
Posted: May 21, 2012 1:58 PM
News Summary: Yahoo selling half of Alibaba stake

CHINA STAKE SALE: Struggling Internet company Yahoo Inc. has secured a lifeline after agreeing to sell half of its prized stake in Chinese e-commerce group Alibaba for about $7.1 billion.

BUYBACKS: After paying taxes, Yahoo expects to pocket about $4.2 billion. The company still hasn't decided what to do with the proceeds. For now, Yahoo is stepping up its commitment to buy back its own slumping stock.

HISTORY: The announcement comes after more than two years of talks held under four different CEOs as Yahoo tried to sell the Alibaba stake to raise money for its turnaround effort.