Yahoo announced Tuesday that it officially exited roughly half of its stake in Alibaba Group Holding and it said it would return 85% of the $4.3 billion in after-tax proceeds to shareholders.
Shares of Yahoo! (YHOO) rose 17 cents, or 1%, to $15.85. Alibaba Group Holding is the parent of Chinese e-commerce site�Alibaba.com.
Yahoo’s press release didn’t detail how the after-tax proceeds would be doled out, but said “Yahoo! will return approximately $3.65 billion in after-tax proceeds to shareholders” including $646 million in repurchases already made since the transaction was announced.
The deal cuts Yahoo!’s stake, which was 42%, to about 23% of Alibaba common stock valued at $8.1 billion, plus another $800 million in preferred stock.
Yahoo! said in its release that it received approximately $7.6 billion in proceeds: $6.3 billion in cash, $800 million in preferred Alibaba shares and a payment of $550 million for a technology and intellectual property license agreement.
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