China's Alibaba peeks at its future through Microsoft's Yahoo fog: WSJ
16 Feb 2008
New York: Chinese Internet company Alibaba Group, which is part-owned by Yahoo! Inc. has hired advisers to help it figure out its future if a possible deal between Yahoo! and Microsoft Corp goes through.
According to the Wall Street Journal, Alibaba believes that Microsoft will eventually succeed in acquiring the beleaguered online pioneer, and has therefore decided to get lawyers and financial advisers to look at issues arising out of the possible deal.
Prominent among them would be how Alibaba could increase management's control in areas such as board composition and voting rights, the Journal said on its website.
The company asked advisers for their view a day after the Chinese government said it would scrutinise the deal. Alibaba has been contacted by Chinese regulators, who are seeking information on how it could be affected if Microsoft purchases Yahoo!.
Yahoo! owns 39 per cent of Alibaba, which also runs other web businesses, which makes it Alibaba's largest shareholder.
Alibaba's founder founder Jack Ma has retained effective control over its operations, despite the large shareholding, and executives at Alibaba are concerned that the possible deal could cast shadows over its independence.
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