Image via CrunchBaseThe shares of Yahoo! saw a slight decline after the cross-statements passed between the Alibaba Group, a Chinese e-commerce giant and the California Internet company Yahoo!, on the Friday. Yahoo! is one of the largest share holders of the AliBaba Group and in consequences of its anxiety with AliBaba Group, its fell upto 3.61 percent closing at a rate of $16.55, as reported by Wall Street on Friday. WSJ further elaborated that the downfall in the Yahoo! stock began even before Friday, as the announcement of Alibaba acquiring its own online payment business, Alipay, on Wednesday.
Image via CrunchBaseRetaliating to the news and affects, Yahoo! file an official complaint on Tuesday to the US Securities and Exchange Commission regarding this ownership of Alipay, which largely shifts the charge of the Chinese company towards the owner of Alibaba, C.E.O. Jack Ma. In this complaint Yahoo! has appealed that it was not consulted regarding this new acquisition of Alipay, and went on blaming that this step has been taken without the approval of Alibaba's board of directors or shareholders. Yahoo! pointed out that even though this step was finalized by the company in August, Yahoo! and the second largest stakeholder, Japan's Softbank, were informed later in March, without any consultation of their opinion.
Alibaba has refused all these allegations from Yahoo! and given an official statement on Friday declaring that all Chinese legal requirements were fulfilled in the ownership, and also added that this issue was definitely consulted within the board meetings. AliBaba claimed that this step was taken to "comply with Chinese law governing payment companies in order to secure a license to continue operating Alipay." It went on explaining that "The Alibaba Group board discussed at numerous board meetings over the past three years the impending imposition of new regulatory requirements on the online payment industry, including ownership structures."
Furthermore, Alibaba also clarified that the board was informed way back in July 2009, that the majority of the shares of Alipay will be transferred to the Chinese ownership. Only the rest of the stakes were transferred in August apparently. AliBaba had a very clear stance implying that "The actions taken by Alibaba Group management to comply with the licensing regulations and to ensure continuation of operations are in the best interests of the company and its shareholders."
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