Yahoo has announced an amendment to the share repurchase and preference sale agreement with Alibaba. The amendment reduces the maximum number of shares of Alibaba that Yahoo is required to sell in connection with a qualified IPO (initial public offering) of Alibaba, from 261.5 million shares to 208 million shares.
The original repurchase agreement, entered into in May 2012, provided that in the event Alibaba completed a qualified IPO, Yahoo would sell up to 261.5 million of its 523.6 million ordinary shares of Alibaba, either directly to Alibaba or in the qualified IPO. After an IPO, Yahoo has the right to sell its remaining shares at its discretion.
“Yahoo has always believed in the long-term potential and value of Alibaba, and we are pleased to maintain a larger stake in the company’s future,” said Jacqueline D. Reses, Chief Development Officer of Yahoo and Alibaba board member. “We look forward to continued partnership with Jack, Joe and the entire Alibaba team.”
“Under its new leadership, Yahoo has made it a priority to build a good relationship with Alibaba,” said Joe Tsai, Executive Vice Chairman and board member of Alibaba, “We look forward to working with Yahoo as a supportive shareholder and partner to expand our business for future growth.”
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