Yahoo Closes $7.6 Billion Deal With Alibaba Group; Proceeds To Shareholders

SUNNYVALE (CBS/AP) — Yahoo will live up to its promise to pay its shareholders most of the money from a $7.6 billion deal with the Chinese Internet company Alibaba Group.

Yahoo reassured its shareholders Tuesday a few hours after Alibaba disclosed it had completed a complex transaction announced four months ago.

At that time, Yahoo pledged to distribute most of the proceeds to shareholders who have been frustrated with the company’s slumping stock price.

But Yahoo signaled last month that new CEO Marissa Mayer might scrap that plan and hold on to the money to finance her ideas for turning around the company.

Yahoo now estimates shareholders will receive $3.65 billion of the $4.3 billion remaining from the Alibaba deal after taxes.

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 This material may not be published, broadcast, rewritten, or redistributed.)

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