Yahoo announced that it has closed a $7.6 billion deal that includes selling half its stake in the rapidly growing Chinese company Alibaba Group and with this deal, Yahoo is expected to gain at least $4.2 billion, after taxes. Most of this may be distributed to shareholders.
The details of the complex deal include that Alibaba is paying $7.1 billion to buy back Yahoo’s 20% stake in the company and an additional $550 million to cover revised technology and licensing agreement. Yahoo will retain about 20% stake in Alibaba.
This is the first deal closed by Yahoo, after Google Inc. executive Marissa Mayer took over as CEO of the company.