Alibaba's Jack Ma Shows Major Interest in Yahoo
Jack Ma, CEO of Alibaba was at Standford University to give a talk, but news all over the internet were about only one thing -- Ma's interest in swallowing Yahoo whole.
The increasingly unstable Yahoo, who bought the Chinese web-based trade company in 2005 for US$1 billion, must be in dire straits if such a reversal is even considered.
Yahoo owns a large portion of Alibaba.com, and it was only a few weeks ago, that Alibaba was estimated to be worth US$32 billion. This odd event also boosts Yahoo's net worth substantially, because their 43% stake in Alibaba.com has been estimated to be worth US$13 billion..
Businessweek has estimated Yahoo to be worth about US$16.6 billion right now.
Yahoo and Alibaba have been feuding over Alipay, Alibaba's payment service, which was transferred out of Alibaba.com, into another company controlled by Ma.
And now that Alibaba is worth more than its parent company, it would probably make Jack Ma very uncomfortable if anyone else were to buy Yahoo, because that meant they controlled his company too.