At the China 2.0 conference at Stanford on Friday, Alibaba CEO Jack Ma stated that he is “very much interested” in acquiring Yahoo, despite the company going under heavy loss.
During a speech, Jack Ma told that Alibaba is keen on buying the Internet giant Yahoo. He stated – We are very interested in Yahoo. Our Alibaba group is important to Yahoo and Yahoo is important to us. There are so many people who are interested in that, and we are also talking to them
Alibaba now falls in line with the increasing list of companies which are interested in buying Yahoo, including software giant Microsoft, Hellman & Friedman, Andreesen Horowitz, and the private equity firm Silverlake Parnets, which have already approached Yahoo, but failed to strike a deal. It was rumored that Yahoo’s co-founder and one-time CEO – Jerry Yang – was planning to buy the company most probably by acquiring 50 percent of the shares, and take control over it, again.
On February 1, 2008, Microsoft offered $44.6 billion to buy the Internet giant, but Yahoo was holding out for $37 a share and the offer was withdrawn. Yahoo’s share in 2008 valued at $31 a share, and today the figure is entirely reversed as the stocks are trading at $13.
However in 2009, Microsoft and Yahoo made a deal in which Microsoft would provide search services to Yahoo in exchange for search ad revenue. According to the deal, Microsoft will power Yahoo’s search technology for 10 years, also gaining access to Yahoo’s search technology assets. Microsoft in return will give Yahoo a percentage of the ad revenue generated alongside those searches.
Despite having rejected the $44.6 billion offer in 2008, Yahoo has certainly failed to deliver a tough competition to Google and Facebook. During the reign of Carol Bartz, Yahoo closed down most of its valued services in an attempt to focus on simplifying and enhancing mobile Web experiences.
Alibaba’s interest in acquiring Yahoo is a fascinating fact. Yahoo owns about 40 percent of the Chinese e-commerce giant Alibaba Group, which it acquired several years ago. Despite several tries by Ma to acquire the stakes back, they were rejected by former CEO Carol Bartz.
Last month, Yahoo had to sack its CEO Carol Bartz since her performance at Yahoo had mostly been effortless. Timothy Mores was appointed as the interim CEO of the company.