Deals
Yahoo Bet on Alibaba Shows Risk in China’s Legal Gray Areas
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Yahoo! Inc. and Japan’s Softbank Corp., eager for a slice of profits in China’s Internet industry, found that even a seemingly safe way around restrictions can turn risky and threaten the value of their stake in the country’s biggest e-commerce provider.
Yahoo and Softbank, major shareholders of online-commerce company Alibaba Group Holding Ltd., have been bypassing the restrictions by contracting with Chinese partners to provide technical services in exchange for a share of revenue.