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Is Alibaba getting ready for a serious Yahoo play?

Yahoo has been on very shaky ground for a long time and has seen its profits fall. The company is rumored to be ripe for a takeover or buyout and there are a number of potential bidders being rumored. One of those potential bidders is the Chinese site Alibaba. Yahoo actually owns part of Alibaba right now.
 
Alibaba owner Jack Ma has expressed interest in buying all of Yahoo and is planning to try to buy back the part of Alibaba that Yahoo owns. Reuters reports that Alibaba is now seeking a new round of debt financing. The company is seeking up to $4 billion dollars. According to some, the Yahoo stake in Alibaba is worth in the area of $9 billion.
 
Sources close to the Alibaba dealings claim that Alibaba has hired Rothschild to advise them on debt and has sent term sheets out to banks seeking proposals for debt financing. The term for the debit is thought to be three years.
 
Interestingly Alibaba is part of a consortium of firms that is interested in bidding on Yahoo. The Blackstone Group and Bain Capital are working on a $25 billion deal to buy all of Yahoo. Alibaba is one of the partners along with Softbank Corp in Japan. Reuters reports that Alibaba wants banks to offer underwritten commitments for $1 billion with a hold of $400 million according to sources.
 
There are no official comments from any of the players in the Yahoo takeover rumors or on the Alibaba debt financing. 

Source: Reuters



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