Chinese e-commerce giant Alibaba Group is unlikely to pursue Yahoo Inc’s flagging core Internet business, the Wall Street Journal reported, citing a source with knowledge of the matter.
Yahoo’s core business isn’t deemed attractive given the difficulties successive managers have had in turning it around, the source was quoted as saying.
Alibaba is also not interested in Yahoo’s stake in Yahoo Japan Corp., according to the report.
The Chinese group will only be interested in repurchasing Yahoo’s 15 percent stake in Alibaba if it came at a steep discount, the source told the paper.
Yahoo’s board is holding a series of meetings this week to consider selling off the Internet businesses.
Among its options, Yahoo is weighing how to make the most of its stake in Alibaba, currently valued at more than US$30 billion, and its 35 percent stake in Yahoo Japan, now valued at roughly US$8.5 billion, the Journal said.
Given its stake in Alibaba, Yahoo’s strategic review raised the option for the Chinese company to come in and buy back its shares and, potentially, purchase other parts of Yahoo.
But the Chinese group is not interested in Yahoo’s core business, at least for now.
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