Image via CrunchBaseYahoo Inc. and Alibaba Group both have just released a joint statement on this Sunday, stating that both giants are "engaged in and committed to productive negotiations." No further elaborative details were provided, which implies that both companies are just together to present a united front as the aggressiveness between the two companies grows gradually. Yahoo is actually the 43 percent stakeholder of Alibaba group, one of the most powerful Internet Companies in China. These constraints between the companies were revealed first on the Tuesday, when Yahoo surprisingly reported to Wall Street Journal that it was not consulted regarding the decision Alibaba spun off its online payment service, Alipay. Many investors reacted cautiously as Yahoo's stake in Alibaba became controversial and less valuable, evidently the stock down, whit Yahoo closing at $16.55 on Friday.
Image by Ivan Walsh via FlickrThe joint press release on Sunday, of the two companies only included a single statement: "Alibaba Group, and its major stockholders Yahoo! Inc. and Softbank Corporation, are engaged in and committed to productive negotiations to resolve the outstanding issues related to Alipay in a manner that serves the interests of all shareholders as soon as possible." This statement is being considered just as imprecise and ambiguous as the previous statements and allegations of Yahoo! The Yahoo spokesperson, Dana Lengkeek, refused to give any further details about this planned negotiation between the giants and the demands of Yahoo from AliBaba Group. While the representatives of both Alibaba and Softbank, remained unreachable for any comment.
Alibaba's is one of the key factor behind the success of Yahoo in these past recent years, as the company coped with its intense competitions with rivals like Google Inc. Yahoo! has kept its investments in China’s AliBaba group for as long as six-year, profiting from the intensely populated area as its rivals like Google remain unsuccessful in their businesses endeavors in that area.
The complaint filed this Tuesday by Yahoo accused Alibaba to have spun off its Alipay system to another company, just for the sake of getting "an essential regulatory license." Yahoo declared that this step was taken by Alibaba, while Yahoo along with other investor Softbank were in an "ongoing discussions regarding the terms of the restructuring and the appropriate commercial arrangements related to the online payment business."
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