The CEO of Japanese mobile operator Softbank has said that talks are running smoothly with the Chinese e-commerce group Alibaba over a controversial transfer of power at one of its subsidiaries, e-payments service Alipay.
Softbank CEO Masayoshi Son was…
The CEO of Japanese mobile operator Softbank has said that talks are running smoothly with the Chinese e-commerce group Alibaba over a controversial transfer of power at one of its subsidiaries, e-payments service Alipay.
Softbank CEO Masayoshi Son was quoted telling Reuters that the talks were progressing well with Alibaba. In a very public show of trust, he also hugged the founder of Alibaba, Jack Ma, on stage.
Softbank and US search engine company Yahoo are the two major shareholders in Alibaba.
The Wall Street Journal reported that the dispute between the different groups started in 2009, when the ownership of Alipay was transferred from Alibaba to a separate company under Ma’s personal control.
Ma has reportedly argued that this transfer of control was necessary to keep Alipay’s licences to operate in China, as new foreign ownership rules mean that non-Chinese companies cannot maintain a stake in payment companies.
For their part, Softbank and Yahoo have reportedly accused Ma of transferring Alipay without their approval.
Softbank and Yahoo were unavailable for comment.
In a statement, Alibaba said that the company’s board, which includes members from both Softbank and Yahoo, had discussed new regulatory requirements on the online payments industry over the past three years.
It said that the board was told that control of Alipay had been transferred at a meeting in July 2009.
“The actions taken by Alibaba group management to comply with the licensing regulations and to ensure continuation of operations are in the best interests of the company and its shareholders,” Alibaba said.
The move could be seen as a set back to Softbank’s ambitions in the region.
In an interview with TelecomFinance in January, the senior VP at Softbank Mobile, Tetsuzo Matsumoto, said that the company was striving to be the “Number One internet company in Asia” and mentioned its strategic investment in Alibaba.
