China’s e-commerce powerhouse, Alibaba Group, is seeking up to $4 billion in debt financing in a deal expected to help the company buy back the 40% of itself that Yahoo (YHOO, quote) currently owns.Alibaba Group holds a 73% interest in its listed entity, Alibaba.com Limited (ALBIY, quote).
Since the parent group is private, there is no hard figure for what Yahoo’s 40% stake in the company is actually worth, but some analysts believe it is worth at least $9 billion.
ALBIY fell to a two-month low on Shanghai on the news.
Alibaba, founded by billionaire entrepreneur Jack Ma, has long been feuding with Yahoo and has made its intention quite clear for some time that it wanted to be free of its one-time strategic partner.
This feud re-entered the headlines recently with Yahoo being the subject of takeover rumors.
The consortium said to be involved in the takeover include Alibaba, Japanese internet giant Softbank (SFTBF, quote) and American private capital firms Bain Capital and the Blackstone Group (BX, quote).
Whether the Yahoo takeover goes through or not, one thing is certain. Alibaba’s Jack Ma wants to be rid of Yahoo once and for all and he will not stop until that is accomplished.