Shares of Yahoo got a lift after Jack Ma, CEO of Alibaba Group, said he is “interested” in buying Yahoo and has been approached by private equity firms and others about a potential deal. Ma has indicated in the past that Alibaba would like to increase its presence n the U.S.; however, the company has faced increasing competition in China and is still working to put a fraud scandal discovered earlier this year in the past.
If a deal is reached, it would be one of the largest purchases of a U.S. company by a Chinese company, which could result in some resistance from regulators and U.S. lawmakers. Yahoo currently owns a 40% stake in Alibaba, a position which Ma has sought to buy out and has been a point of contention between Ma and Yahoo executives, resulting in a war of words earlier this year.
Both Yahoo and Alibaba declined to comment on the potential acquisition. Separately, Yahoo and ABC News announced they had created a news alliance which will see the two news companies collaborate on coverage for both the Yahoo News and ABC News websites. This builds on a previous relationship which saw ABC news provide 20-25% of video streams to Yahoo News.
Yahoo (YHOO : NASDAQ : US$13.53), Net Change: 0.36, % Change: 2.73%, Volume: 43,075,526
Canaccord Genuity Inc. is a global investment banking and institutional brokerage firm. Their website is www.canaccordgenuity.com.
For disclosures of any equities mentioned here please see: http://www.canaccordgenuity.com/en/ODD/pages/disclosures.aspx