Yahoo ex-CEO Jerry Yang and Alibaba CFO Joseph Tsai

When Alibaba founder Joseph Tsai walked side by side with Yahoo! ex-CEO Jerry Yang into the entertaining venue of the China-based Internet company 10th anniversary show, did he know that  the US-based partner has decided to sell Alibaba’s stakes?

Yahoo!’s disposal of 57.48 million shares in Alibaba.com on September 14 came after Alibaba founder Jack Ma’s share placement of 13 million of his shares, or less than 5 percent of his total direct and indirect holding, in the company for about $35 million last week.

Yahoo decided to sell the shares at HK$19.8 to HK$20.3 each,  4%-6.4% lower than the Alibaba.com closing price of HKD 21.15 on Monday. The company paid more than $1 billion in 2005 as part of its investment into Alibaba Group.

Yahoo pocketed at least 47% on the HK$ 13.5 each-priced shares it bought during the Alibaba.com initial public offering (IPO) less than two years ago.  It still remains a major shareholder of Alibaba Group with a 39% stake after the sale.

Alibaba.com raised $1.49 billion in its October 2007 IPO in Hong Kong, pricing the issue at HK$13.50 per share, with Yahoo buying a portion of the offering at the time.

Last month, Alibaba Group announced a restructuring of its China Yahoo business by separating Koubei.com, a classified-listings Web site, from China Yahoo and transferring the unit into its retail Web site, Taobao.com.

 
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