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With its 40% equity stake in Alibaba.com and also 35% voting rights in Alibaba, which is an e-commerce company in China, Yahoo! has already made China a partner. Daniel Rosensweig, COO of Yahoo!, states With our brand, their management, and their leadership, we think we have put together the greatest set of assets in China for the Internet. Alibaba's CEO Jack Ma is still in charge in China, and Mr. Ma will have the assets to create some important challenges for Google, Microsoft, and particularly eBay, in China. Both Yahoo! and Alibaba are also in possession of a better business model than either one had by itself. The competitive Chinese Internet landscape will be transformed, say some, since Mr. Ma will be able to add the assets of Yahoo! to his other strategies as a competitor to eBay, Google, and many Chinese rivals. All of Yahoo!'s China properties will be transferred to Alibaba, and Yahoo! will also pay $1 billion in cash for its interest in Alibaba. With the money, Alibaba will allow Taobao to compete more equitably with eBay EachNet. Yahoo! and Alibaba are stronger than ever before on paper, so eBay is using the challenge from TaoBao as the impetus to become even stronger yet.
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