Alibaba Seen Avoiding Facebook Flop With IPO Below $100 Billion

Alibaba Group Holding Ltd. doesn’t want to be the next Facebook Inc. -- at least for its prospective initial public offering. The world’s biggest online retailer is considering a more conservative valuation than what the social-networking company achieved last year, a person familiar with the situation said.

While Alibaba, based in Hangzhou, China, has said it has no timetable for an IPO, analysts are anticipating an offering this year or next. Proceeds from the IPO would be used along with additional cash to buy back stock held by Yahoo! Inc., said the person, who asked not to be named because the plans are private.