360° Coverage : China's Alibaba Group aiming to raise $1B in IPO

2 Updates

China's Alibaba Group aiming to raise $1B in IPO

May 6 2014, 4:52pm CDT | by

SAN FRANCISCO (AP) — China's Alibaba Group is aiming to raise $1 billion in a long-awaited IPO likely to have ripple effects across the Internet. Tuesday's filing sets...

Filed under: news

 
 
 

16 weeks ago

China's Alibaba Group aiming to raise $1B in IPO

May 6 2014, 4:52pm CDT | by

SAN FRANCISCO (AP) — China's Alibaba Group is aiming to raise $1 billion in a long-awaited IPO likely to have ripple effects across the Internet.

Tuesday's filing sets the stage for the technology industry's biggest initial public offering since short messaging service Twitter and its early investors collected $1.8 billion in its stock market debut last fall. Alibaba could still try to raise more money and even surpass the $16 billion that Facebook did two years ago, depending on investor demand for its stock .

For now, Alibaba isn't specifying how much stock will be sold in the IPO or setting a price range. Those details will emerge as the IPO progresses, a process is likely to take three to four months to complete before Alibaba's shares begin trading on the New York Stock Exchange.

Although it's not nearly as well-known as Facebook, Alibaba has emerged as an e-commerce powerhouse that has been making more money than Amazon.com Inc. and eBay Inc. combined. What's more, the company is still growing at a rapid clip as its network of online services, including Taobao, Tmall and Alipay, mine a Chinese Internet market that already has twice as many Web surfers as the U.S.

The IPO is expected to provide Alibaba with the financial firepower to expand into other markets, including the U.S. Signaling its intent to extend its reach, Alibaba recently bought digital mapping service AutoNavi Holdings Ltd. for $1.5 billion and acquired a 16.5 percent stake in video website Youku Tudou in a $1.2 billion deal. Alibaba also just invested $215 million in Silicon Valley startup Tango to gain a toehold in the mobile messaging market.

Alibaba's success has provided a financial crutch for Yahoo Inc., whose 24 percent stake in the Chinese company is the main reason that its own stock price has more than doubled during the past two years.

Yahoo is required to sell 208 million shares, or 40 percent of its Alibaba holdings, in the IPO as part of an agreement reached last year. The divestiture is expected to generate a windfall of more than $10 billion that will help define Yahoo CEO Marissa Mayer's legacy at the Sunnyvale, California company. Yahoo paid $1 billion for its original stake in a 2005 deal engineered by two of Mayer's frequently maligned predecessors as CEO, co-founder Jerry Yang and Terry Semel.

Mayer could distribute most of the Alibaba proceeds to Yahoo's stockholders by paying dividends or buying back millions of the company's shares. She primarily bought back Yahoo stock after the company reaped more than $7 billion from a 2012 sale of Alibaba stock.

Or Mayer could set aside some of the Alibaba money to finance an acquisition that would increase Yahoo's audience and digital advertising sales. Mayer might be tempted to do something bold because so far she hasn't been able to boost Yahoo's revenue during her nearly two-year reign.

Some analysts view AOL Inc. as a logical takeover candidate. Like Yahoo, AOL is a once-imposing Internet company that was outwitted by hard-charging innovators such as Google Inc. and Facebook that built lucrative advertising networks around dominant online franchises. AOL currently has a market value of $3.5 billion, a price that Yahoo could easily afford to pay after the Alibaba money rolls in.

The IPO could also provide the money for another major Alibaba stockholder, Japan's SoftBank Corp., to buy wireless carrier T-Mobile US Inc. Softbank already controls Sprint Corp. and has openly discussed the possibility of bidding for T-Mobile, too, in effort to become a more formidable player in the wireless market.

The IPO will cast a spotlight on Alibaba's improbable rise, as well as the promise of China's steadily growing Internet market.

 
Update
2

2 days ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new company (NewCo) and slashing the workforce of 20,000 by 30 p ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

3 days ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the double tragedies of M ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/31" rel="author">Associated Press</a>
The Associated Press (AP) is one of the largest and most trusted sources of independent newsgathering, supplying a steady stream of news to its members, international subscribers and commercial customers.

 

blog comments powered by Disqus

Latest stories

Man with 'disconnected' brain, alive and kicking at 88!
New York, Sep 1 (IANS) This may sound and read unbelievable but there is an elderly man whose brain has no neural fibre connection between his two hemispheres!
 
 
Ebola toll in Guinea 460
Conakry, Sep 1 (IANS) At least 690 Ebola virus disease cases have been confirmed in Guinea, out of which 460 people have died, the latest data released by the health ministry here shows.
 
 
Caffeinated 'energy' drinks bad for heart
London, Sep 1 (IANS) "Energy" drinks which are so popular during physical exercise and even otherwise among children and younger adults can cause heart problems, a research shows.
 
 
Nepal too to restructure national plan panel
Kathmandu, Sep 1 (IANS) After the new Indian government decided to scrap the Planning Commission, the Nepal government also has decided to restructure, revamp and modernise its National Planning Commission (NPC), which is styled on the Indian planning panel.
 
 
 

Latest from the Network

Man with 'disconnected' brain, alive and kicking at 88!
New York, Sep 1 (IANS) This may sound and read unbelievable but there is an elderly man whose brain has no neural fibre connection between his two hemispheres! For a layman, human brain is divided into two hemispheres...
Read more on Apple Balla
 
Ebola toll in Guinea 460
Conakry, Sep 1 (IANS) At least 690 Ebola virus disease cases have been confirmed in Guinea, out of which 460 people have died, the latest data released by the health ministry here shows. A total of 143 patients were...
Read more on Business Balla
 
Southern African Development Community discusses Lesotho coup attempt
Pretoria, Sep 1 (IANS) The Southern African Development Community (SADC) Monday continued its meeting here on the attempted coup by Lesotho's military. Present at the meeting were SADC Chairman and South African...
Read more on Politics Balla
 
Iraqi forces recapture key town
Baghdad, Sep 1 (IANS) Iraqi security forces Monday recaptured the town of Sulaiman Beg in Salahudin province after more than two months of being under siege by the Islamic State (IS) Sunni extremist organisation, an...
Read more on Politics Balla
 
Caffeinated 'energy' drinks bad for heart
London, Sep 1 (IANS) "Energy" drinks which are so popular during physical exercise and even otherwise among children and younger adults can cause heart problems, a research shows. "People sometimes consume a number of...
Read more on Celebrity Balla
 
Nepal too to restructure national plan panel
Kathmandu, Sep 1 (IANS) After the new Indian government decided to scrap the Planning Commission, the Nepal government also has decided to restructure, revamp and modernise its National Planning Commission (NPC), which...
Read more on Business Balla
 
Women at greater stroke risk from resistant hyper-tension
London, Sep 1 (IANS) The condition known as Resistant Hyper-tension increases stroke risk by 35 percent in women and 20 percent in elderly patients, according to new research. "Patients with hyper-tension that does...
Read more on Apple Balla
 
Indian-origin inventor of 'email' slams critics
Washington, Sep 1 (IANS) V.A. Shiva Ayyadurai, an Indian-origin scientist who received official recognition as the inventor of the computer program for electronic mail system or "email" from the US government 32 years...
Read more on Politics Balla
 
Miley Cyrus still loves Liam Hemsworth
Los Angeles, Sep 1 (IANS) Singer Miley Cyrus says she still has strong feelings for her ex-fiance Liam Hemsworth, with whom she parted ways last year. The 21-year-old split from the actor in September 2013 following...
Read more on Celebrity Balla
 
No interference by Russian military in Ukraine crisis: Minister
Moscow, Sep 1 (IANS) Russian Foreign Minister Sergei Lavrov Monday said Moscow will not send out military troops to...
Read more on Politics Balla