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Ma Yun "Two Birds With One Stone" And YAHOO By Alipay

2011/5/13 11:20:00 43

Alibaba group and YAHOO

control power

The dispute entered a climax.

Alibaba pferred the ownership of Alipay, a wholly owned subsidiary, to a new company controlled by CEO Ma Yun, showing Alibaba's absolute control over its company.

But investors worry that the split of Alipay will worsen YAHOO's relationship with Alibaba.

Late last night, YAHOO submitted to US securities.

paction

The documents of the Commission (SEC) show that Alibaba group has pferred the ownership of Alipay, a wholly owned subsidiary, to a new company controlled by CEO Ma Yun.

On the face of it, domestic holding helps Alipay get the required third party payment license.

But in fact, Ma's move shows Alibaba group's absolute control over its company.

Prior to that, Alibaba group has been hoping to buy shares held by Yahoo Corp, but was rejected by Yahoo Corp.

some

Investment

The worry is that the separation of Alipay will worsen the relationship between YAHOO and Alibaba.

Stimulated by this news, YAHOO's share price fell 7.3% yesterday.

Alipay turning to domestic capital

Judging from the reasons announced by the two sides, the change of control is to obtain payment license, so that a domestic enterprise 100% holding Alipay for national financial information security considerations.

YAHOO also disclosed in the SEC document that in order to get the license as soon as possible, Alibaba group, which owns 43% stake, has pferred Alipay's ownership to a domestic company.

However, some analysts believe that this move is considered a signal of the trend of clarity between YAHOO and Alibaba.

YAHOO finally makes concessions.

YAHOO delivered its China search business to Alibaba group in 2005, and inject $1 billion into the group and get 39% of Alibaba group.

Today, this marriage is on the brink of collapse.

In recent years, Alibaba has expressed strong dissatisfaction with YAHOO, a major shareholder, that YAHOO has not obtained any search technology from YAHOO, and YAHOO has even caught the market in Hongkong and the mainland.

The Alibaba has repeatedly asked to buy back shares and put forward a proposal to "expel" YAHOO, which has been rejected by YAHOO.

This time, YAHOO agreed to pfer Alipay assets to Ma Yun controlled company. This may be a concession that YAHOO has to make based on its own interests. If it fails to do so, Alipay will not get a licence, which is not in conformity with the interests of YAHOO, but it still leaves much suspense.

Forecast

Confrontation may continue or force YAHOO to follow suit.

The industry expects that the two companies will continue to fight for equity disputes.

On the one hand, YAHOO is unwilling to cut its meat before it profits.

From now on, a large part of YAHOO's valuation depends on overseas assets rather than the US business going ahead in difficulties.

Prior to that, YAHOO has made a lot of money from the listed Alibaba B2B company. The unlisted Taobao networks and Alipay's two businesses have become the core assets of Alibaba group. The valuation of the two companies will reach tens of billions of dollars after the listing in the future. YAHOO is obviously not willing to give up the controlling power too early.

On the other hand, Alibaba group is expected to continue to exert pressure to force YAHOO to release some of its shares.

According to sources, Alibaba's two profitable businesses, Taobao and Alipay, have not yet been listed. The problem is that YAHOO's shareholding has not been resolved.

According to sources, Ma is expected to "leave his right hand" and gradually divestiture the core assets of the group. The other hand is to hold the two largest asset, which is to delay the listing, in order to force YAHOO to surrender.