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August 11, 2005

Does a Yahoo (YHOO) / Alibaba combination pose a threat to EBAY in China?

Forbes reported yesterday that Yahoo (ticker: YHOO) is negotiating to acquire a 35% stake in Alibaba for approximately $1 billion. S&P analyst Scott Kessler had the following reaction:

On Yahoo (ticker: YHOO)

....An unconfirmed report in Forbes.com indicates that Yahoo is in talks to acquire 35% of Alibaba for some $1 billion. Alibaba is a leading e-commerce company in China that owns payment service AliPay and about half of the consumer auction business Taobao. We think this potential deal would be quite complicated because of Softbank's stake in Taobao and Yahoo's joint venture with Sina Corp. (ticker: SINA). We think this constitutes a price/sales valuation that is pricey, but seems more reasonable given Alibaba's market position and notable interest in Chinese Internet properties.

On eBay (ticker: EBAY)

Via The China Stock Blog

Posted by dymaxion at August 11, 2005 09:25 PM


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