Yahoo Agrees to Sell Back Partial Stake to Alibaba

Partially related to the former Yahoo CEO Scott Thompson resigning in disgrace recently; but mostly related to hedge fund activist investor Daniel Loeb getting seats on the Yahoo! board of directors, Yahoo has liquidated some of its stake in Aliba.

Yahoo will sell off about half of its stake in Alibaba Group back to the Chinese e-commerce giant in a US$7.1 billion deal.

This is known as a liquidity event or Daniel Loeb getting something for his 5% stake in the company and related on going headaches.

Yahoo! shares opened slightly gap-up on the news (NASDAQ:YHOO), but has since faded in normal trade.