01/27/15 3:10:19 AM
Chinese e-commerce giant Alibaba is looking to keep expanding after its massive IPO, and eyes are on one of its key supporters – U.S. Internet player Yahoo. Jane Lanhee Lee reports.
Chinese e-commerce giant Alibaba Group wants in on global markets. And the key could be Yahoo.
Yahoo releases earnings on Tuesday.
Investors are waiting to see what CEO Marissa Mayer is going to say about the company’s nearly 40 billion U.S. dollar-worth of Alibaba shares.
Yahoo was the company that first brought Alibaba global attention when it invested a billion dollars a decade ago.
But the tables have since turned with Alibaba dwarfing the U.S. Internet company.
Its mega-IPO in New York last year has made it one of the most valuable tech players in the world.
Alibaba’s been on a buying spree, spending more than six billion dollars just since last year, and some market watchers say that Yahoo should be next on the list.
(SOUNDBITE) (English) REUTERS REPORTER, JANE LANHEE LEE, SAYING:
“But the risk some say is that U.S. politicians could try to block such a deal if they consider Yahoo a strategic asset. Yahoo’s share of the U.S. search market may be small but foreign investors are technically banned from investing directly in Chinese Internet companies. And as China and the U.S. are in a tit-for-tat fight over cybersecurity issues, the U.S. could put up some barriers.”
So while Alibaba is likely to continue its global shopping spree, for now big Internet names in the U.S. may be a stretch to add to its basket.
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