How Microsoft Bid for Yahoo Affects Japan

Posted by Bill Belew on February 21st, 2008 in Japan | Comments Off

Microsoft is not just bidding for Yahoo!

If Microsoft gets control of Yahoo, and that seems to be what many think will happen, Microsoft will also get a great deal of control of Alibaba in China.

Yahoo owns a 39% stake in Alibaba.

Japan's Softbank Corp owns another 30% of Alibaba, effectively making Microsoft and Softbank partners in Alibaba.

Alibaba owns:

1. about 80% of "Alibaba.com Ltd., the online trading site that raised $1.5 billion in an initial public offering in October and is now the biggest listed Chinese Internet company with a market capitalization of nearly $13 billion."

2. a consumer auction site,

3. an online-payment and software businesses

4. Yahoo China.

Instead of Softbank teaming up with Yahoo for an interest in the Alibaba, the giant telecom company will be working with Microsoft. 

Alibaba has hired advisors to help negotiate expanded management independence should MS take over.

Until now Alibaba has enjoyed relative independence in its operations.

Jack Ma of Alibaba says Alibaba management "will always maintain its independence and management control" over the company, regardless of who its shareholders are.

Softbank? Microsoft? Yahoo? Any of them? All of them?

Doesn't matter to Jack Ma. Yet. 

source


 

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