Alibaba agrees to repurchase a 20% stake in itself from Yahoo (YHOO) for ~$7.1B. Yahoo will...

|By:, SA News Editor

Alibaba agrees to repurchase a 20% stake in itself from Yahoo (YHOO) for ~$7.1B. Yahoo will receive at least $6.3B in cash and up to $800M in newly-issued Alibaba preferred stock. At the time of an IPO, Alibaba will be required to ultimately buy back 25% of Yahoo's current stake, or let Yahoo sell those shares in the offering. Alibaba will make an upfront royalty payment of $550M and continuing royalty payments for up to four years. (PR) (previously)