US search engine company Yahoo, Chinese e-commerce group Alibaba and Japanese mobile operator Softbank have solved their dispute over the transfer of online-payment company Alipay.
Softbank and Yahoo are the two major shareholders in Alibaba, and the…
US search engine company Yahoo, Chinese e-commerce group Alibaba and Japanese mobile operator Softbank have solved their dispute over the transfer of online-payment company Alipay.
Softbank and Yahoo are the two major shareholders in Alibaba, and the dispute between the different groups reportedly started in 2009, when the ownership of Alipay was transferred from Alibaba to a separate company under the personal control of Jack Ma, the founder of Alibaba.
According to reports, Ma 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 reportedly accused Ma of transferring Alipay without their approval.
But in a statement on 29 July, the companies said they have now reached an agreement, “in which Alibaba Group will continue to participate in Alipay’s future financial performance, including a future IPO or other liquidity event.”
But the agreement stipulates that Alibaba will receive no more than US$6bn in proceeds from an IPO or other liquidity event.