Alibaba raises $5.9 billion to complete Yahoo stake acquisition

The Chinese e-commerce company defies challenging markets as it raises a combination of debt and equity to cut Yahoo’s stake to 23%.
Jack Ma, founder of Alibaba
Jack Ma, founder of Alibaba

Alibaba Group Holding, China’s biggest e-commerce company, said late last night that it has completed the repurchase of half of Yahoo’s 40% stake after securing $5.9 billion of debt and equity financing from global banks and international investors. As per the agreement between the two companies, which was first announced in May, Alibaba will pay Yahoo $6.3 billion in cash and $800 million in preference shares for a total acquisition cost of $7.1 billion.

The difference between the $5.9 billion financing package and the total outlay, which also includes a one-time cash payment of $550 million related to the amendment of the existing technology and intellectual property licence agreement between...

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