Sunnyvale Based Yahoo Nearing Deal To Sell Stake In Alibaba

SUNNYVALE (KCBS/AP) – Yahoo Inc. may be nearing a deal to sell to sell a part of its prized stake in the major Chinese e-commerce provider Alibaba.

Bloomberg Businessweek is citing unnamed sources in reporting that the struggling U.S. Internet company could announce as early as Sunday that it has reached an agreement to sell half of its 40 percent stake in Alibaba.

The transaction could bring Yahoo $7 billion.

Representatives for both companies declined to comment Sunday.

Yahoo and Alibaba have been negotiating for more than a year. The talks at times have also involved Japan’s SoftBank Corp., Alibaba’s other major shareholder.

The deal could help appease Yahoo shareholders by giving the company a cash infusion for dividends and possible acquisitions or share repurchases.

Yahoo’s market value is $19 billion.

(Copyright 2012 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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