In-a-spin! Yahoo! clutches! Alibaba! baby! to! breast!

Purple Palace plans to chuck other assets out the door instead

Yahoo! has backed away from plans to cut loose its remaining multi-billion-dollar stake in Chinese e-commerce firm Alibaba.

The Purple Palace said that it will now spin off assets and liabilities other than its Alibaba stake, after it got in a pickle over "the market's perception of tax risk" over the original proposal.

Yahoo!'s 384 million shares in Alibaba are worth $32bn – dwarfing the Marissa Mayer-run company's core biz, which is worth $4bn.

On Tuesday, the ailing firm said in a statement:

The Board remains committed to accomplishing the significant business purposes and shareholder benefits that can be realised by separating the Alibaba stake from the rest of Yahoo!.

To achieve this, we will now focus our efforts on the reverse spin off plan.

Mayer promised investors that Yahoo! will "prioritise investments to drive profitability and long-term growth".

The embattled chief claimed that the "reverse spin" plan – which is subject to shareholder approval – for the Alibaba stake would "provide more transparency into the value of Yahoo!'s business." ®

Similar topics

Other stories you might like

  • Chinese e-commerce giant Alibaba makes 9 datacenter energy patents available
    Part of a Low Carbon Patent Pledge with Meta, Microsoft, and others

    Chinese tech giant Alibaba is joining a coalition pledging to freely distribute energy efficient and green technologies, and has made nine patents available as part of the deal. 

    The patents Alibaba is giving to the Low Carbon Patent Pledge (LCPP) mostly involve parts of its own in-house "soaking server" liquid immersion cooling system developed in 2015 that Alibaba claims reduced its datacenter energy expenditure by 70 percent.

    Two of the nine patents were unrelated: one limits hard drive power consumption, and another was designed to improve hardware utilization rates. 

    Continue reading
  • US appeals court ruling could 'eliminate internet privacy'
    Tech terms of service dissolve Fourth Amendment rights, EFF warns

    The US Ninth Circuit Court of Appeals on Wednesday affirmed the 2019 conviction and sentencing of Carsten Igor Rosenow for sexually exploiting children in the Philippines – and, in the process, the court may have blown a huge hole in internet privacy law.

    The court appears to have given US government agents its blessing to copy anyone's internet account data without reasonable suspicion of wrongdoing – despite the Fourth Amendment's protection against unreasonable searches and seizures. UC Berkeley School of Law professor Orin Kerr noted the decision with dismay.

    "Holy crap: Although it was barely mentioned in the briefing, the CA9 just held in a single sentence, in a precedential opinion, that internet content preservation isn't a seizure," he wrote in a Twitter post. "And TOS [Terms of Service] eliminate all internet privacy."

    Continue reading
  • Alibaba Cloud opens first South Korean datacenter
    Better late than never – all its global and Chinese hyperscale rivals are already there

    Alibaba Cloud has opened its first datacenter in South Korea.

    As is nearly always the case when hyperscalers expand their physical footprints, the company has said nothing about where the facility is located, or its capacity. Sadly, the company is also silent on whether it has brought its flagship immersion cooling to South Korea. It is also unclear if all Alibaba Cloud products, or a mere subset, are offered in South Korea. We've asked the company to clarify matters.

    One product that Alibaba has definitely deployed in South Korea is its "China Gateway" – a service that allows users to operate resources on Alibaba Cloud inside China with Alibaba assisting with local compliance chores, while maintaining secure and dedicated links to cloudy resources outside the Middle Kingdom. The service even offers the chance to rent office space from WeWork inside China, and to arrange local logistics. Alibaba Cloud suggests the service is a fine way for web-based businesses to enter China.

    Continue reading
  • China: Our big tech companies are hiring, not shrinking
    Please dismiss any thoughts you had that increasing regulation might have hurt the economy

    China's Cyberspace Administration has published statistics to assert that the nation's big technology companies are growing and not laying off thousands of workers.

    A Friday post by the Administration (CAC) revealed that from July 2021 to mid-March 2021, a dozen of China's top tech companies increased their collective payrolls by 79,100 people. The post names Tencent, Alibaba, ByteDance, Meituan, Pinduoduo, Kuaishou, Baidu,, NetEase, Weibo, Bilibili and Ant Group, and says all but one increased overall headcount.

    The announcement then offers short summaries of interviews the CAC has conducted with some of the companies mentioned above. All tell tales of re-alignments to catch shifting markets and consumer behaviour.

    Continue reading

Biting the hand that feeds IT © 1998–2022