Yahoo to Keep More of Alibaba After IPO, Return Cash
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Yahoo! Inc. will return at least half of the cash it reaps from Alibaba Group Holding Ltd.’s initial public offering to shareholders, providing solace to investors who’ve hung on as Chief Executive Officer Marissa Mayer struggles to revive sales.
The U.S. Web portal is also keeping a bigger stake in the Chinese e-commerce company, ensuring that Yahoo continues to benefit from its investment in the world’s largest Internet market. The plans for Alibaba were a bright spot in a report yesterday that showed Yahoo’s sales fell last quarter, missing analysts’ projections. The stock slipped as much as 5.3 percent.