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Negotiations Between Yahoo And Alibaba Fail To Conclude Successfully

For Yahoo the past few years have been  a road straight to downturn as both investors and users lost confidence things will change. The latest move that investors were hoping will improve things for the company, now has come to an end. A source familiar with the matter, told Reuters the negotiations between Yahoo and Alibaba failed to conclude successfully.

Reuters writes that Yahoo Inc, Alibaba and Softbank Corp have called off negotiations regarding a tax free sale of Yahoo’s Asian assets. The source that claimed the talks were over confirms a report published by AllThingsDigital that wrote negotiations for the deal were struggling to surpass “a series of snags”.

AllThingsDigital said one source stated that discussions were “completely halted” after some terms in the deal changed. The news comes shortly after chairman Roy Bostock decided to step down from Yahoo’s management along with some other directors.

If Reuters’ source is right, and the negotiations between Yahoo and Alibaba have been shut down, then this once upon a time Internet titan is going to suffer a major setback at a time when Yahoo is fighting hard to reduce shareholders’ worries and discontentment with regards to the its management.

But, Reuters’ source says that although present negotiations are over, Yahoo, China’s Alibaba and Japan’s Softbank Corp might enter another deal, this time taxable.

Just last week, Yahoo’s chairman stated that the company is “in active discussions” with “partners in Asia regarding the possibility of restructuring” its holdings in Alibaba Group and Yahoo Japan.
Analysts write that investors are worried that Yahoo’s time to recover might have passed. The change in Yahoo’s management has been seen as overly due as shareholders considered the board was to blame for the company’s downturn over the past few years as well as failing to raise the bid to remain in competition next to Google and Facebook.

One shareholder said that Bostock’s departure was “monstrously overdue” and pointed out that “the changes to the board would not necessarily accelerate the deal making process or bolster his confidence in the company

Bostock will remain chairman for the next few months, until the company has its annual meeting. A person familiar with the matter told Reuters Yahoo’s new board will decide on a chairman at the appropriate time.

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Lucienne Molnar is our editor in charge with managing the celebrity and fashion sections of DailyGossip. She currently lives in Seattle and has a lot of experience in the fashion industry, most of it accumulated while working as a part time model for a few popular internet clothing stores.Lucienne is a passionate writer dreaming to create her own fashion line someday.You can get in touch with her at Lucienne.Molnar@dailygossip.org

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