US-listed internet services provider Yahoo has resolved a dispute with it portfolio company Alibaba Group over the Chinese company’s transfer of its online payments unit to chief executive Jack Ma, two sources told newswire Reuters.
Yahoo owns 43% of Alibaba but said it had been concerned about the transfer of Alipay to Ma, which has seen Yahoo’s shares fall by about 10% since early May, Reuters said.
The two companies reached an agreement before Yahoo’s analyst meeting last Wednesday, one of the sources told Reuters, but the deal requires the consent of Japan-based media group Softbank founder Masayoshi Son, an Alibaba board member, who has been reluctant to come to the negotiating table, the sources added.
A Softbank spokeswoman said the negotiations were still going on and declined further comment to Reuters.
Yahoo’s stake in Alibaba and its 35 percent ownership in Yahoo Japan are considered the US internet company’s most valuable assets. Softbank holds a stake in Alibaba and also 42% of Yahoo Japan.