Yahoo! Inc. (YHOO) announced that Alibaba.com Ltd. (ALBCF.PK) agreed to repurchase about a 20% stake in itself from Yahoo! for about $7.1 billion.
At the minimum price and assuming the initial repurchase, Yahoo! would receive at least $6.3 billion in cash proceeds and up to $800 million in newly-issued Alibaba preferred stock.
The agreement includes substantial financial incentives for Alibaba to raise the additional equity at a valuation higher than $35 billion.
Alibaba also will be required to either buy back a quarter of Yahoo's current stake at the price of a future initial public offering or let Yahoo sell the shares in the IPO.
Yahoo! intends to return substantially all of the after-tax cash proceeds to shareholders following the closing of the transaction.
While the form of the return of capital to shareholders has not yet been finalized, Yahoo!'s board has increased Yahoo!'s share buyback authorization by $5 billion concurrently with this transaction.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.