Yahoo shares climb on report Alibaba deal near

Reuters News
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Posted: May 18, 2012 4:07 PM

(Reuters) - Yahoo Inc shares rose 5 percent on Friday after a report that it was close to selling part of its valuable stake in the Alibaba Group.

Shares of Yahoo climbed 76 cents to $15.61.

Yahoo and the Alibaba Group, the Chinese Internet group that runs e-commerce site Alibaba.com, are close to an agreement in which Yahoo would sell one-half of its 40 percent stake back to Alibaba, according to a report in All Things D, citing sources.

An Alibaba representative was not immediately available for comment. A Yahoo spokeswomen said the company does not comment on rumors or speculation.

Yahoo's Asian assets, which also includes a stake in Yahoo Japan, are considered the crown jewels of the company, which has struggled over the past decade to regain relevance in the face of competition from the likes of Google Inc and Facebook Inc.

The fate of Yahoo's Asian assets is top of investors' minds.

Talks between the two companies over the stake have been ongoing for some time.

(Reporting By Jennifer Saba; editing by Jeffrey Benkoe)