Alibaba and YAHOO: who grew up who

"Alibaba and YAHOO after seven years of love, in this year's" Valentine's Day "on the day of marriage." Alibaba CEO Ma with such an opening to describe the strategic cooperation between Alibaba and YAHOO. 11, 2009, Alibaba announced the acquisition of YAHOO in China, all of China's assets, while YAHOO $1 billion cash investment. Alibaba said it would pass this acquisition to enhance its influence in the world and build China's strongest Internet search platform. So far, a lot of rumors about the acquisition of Alibaba has been settled. Alibaba and YAHOO: some China "Valentine's day"

According to the Alibaba issued 11 materials, Alibaba acquired Yahoo China assets including Yahoo China portal, YAHOO search technology, communication and advertising, as well as 3721 network services.

The two sides also plans to auction a total of YAHOO's online auction business into Alibaba. Alibaba will also get an exclusive right to use the Internet brand "YAHOO" in China indefinitely. After the acquisition of Yahoo China Alibaba, the company's company will include Alibaba Chinese website, Alibaba English website taobao.com, Alipay search and search portal, online auction site, a shot Chinese Internet service and Yahoo China portal 3721.

At the same time, YAHOO will invest $1 billion in cash to Alibaba, Alibaba and other stock holders to buy shares in the hands of Alibaba. According to the agreement reached, YAHOO will receive 40% of the Alibaba's economic benefits and the right to vote of 35%. YAHOO has thus become Alibaba's largest strategic investor.

In addition, after the merger of Alibaba will set up a board of 4 people. Executives from Alibaba will account for two seats, of which ma served as chairman of the board. The other two seats were owned by YAHOO and Softbank group. Alibaba: what has been obtained from mergers and acquisitions

Although previously on YAHOO will invest heavily to get the news of the Alibaba equity has been spread in the industry, but Ma announced plans 11 M & A, or let the industry and the media have not a small shock. In the eyes of many people, to cultivate in China for many years, YAHOO, a Chinese stuttering, almost Arabian nights. It has even nothing to do with money, technology, or imagination. For YAHOO, on the one hand, with its abundant capital and technology, on the other hand, the Internet China growing market potential and vitality, will attract all enterprises to enter the strategic treasure, YAHOO will take the initiative at all costs and has sufficient strength to seize the market. Therefore, logically speaking, YAHOO may be more likely to acquire other Chinese local enterprises to get faster development rather than to be acquired in the end, but now, Alibaba subvert the logic.

So, the merger will bring substantial gains for the Alibaba? Analysts believe that the Alibaba, the company currently has the world's leading B2B business as well as Asia's leading online auction and secure payment system, after the acquisition is completed, the Alibaba will be YAHOO's leading search technology and platform support, and a strong product development security. Search technology will play an important role in the development of e-commerce. After the completion of the merger, Alibaba will be able to use YAHOO's search technology to further enrich and expand the connotation of e-commerce, B2B and C2C in the field of consolidation and expansion of their leading edge.

Analysys International President Yu Yang believes that the merger will bring benefits to both sides. Alibaba's main problem is cash flow. Alibaba can not support the huge investment in Taobao, Taobao invested more than 100 million yuan last year, this year will not be less, in order to maintain and eBay competition, Alibaba will be difficult to support. With YAHOO after the merger, Alibaba would solve the cash flow problem, and the world's most powerful Internet Co, not only can further promote the Alibaba and taobao.com service, also can strengthen the competition and ebay.

But Yang also believes that Alibaba also has the risk of losing control. Although Ma has said its management team can effectively control the Alibaba, but when YAHOO has become the largest single shareholder, if you want more control, or other people and thus gain control respectively negotiations.

Vice president of the school of management of Chinese Academy of Sciences, Internet critic Lv Benfu pointed out that if the successful acquisition of Alibaba YAHOO China shares, will be listed on the United States has just caused enormous pressure on Baidu. The Yahoo China network and Alibaba B2B services are services for SMEs, will combine these two to many small and medium-sized enterprises to provide more choices for the same market, Baidu ranked bid will be a huge threat. YAHOO: new ideas in China

Although from a formal point of view, after the merger, the independent YAHOO China will no longer exist, but will become one of the 4 core Alibaba. But from a certain point of view, YAHOO China has not disappeared, but for a form of existence and development. After the merger, we are not a joint venture, but a new model, that is, YAHOO to its business in China to Alibaba to operate. Before my commitment to employees is to do a good job Alibaba and Taobao, from today, I have added a commitment, it is necessary to do a good job YAHOO." Ma Yunru is saying. In this sense, YAHOO is in China to find a reliable tube