Alibaba Not Giving Priority To Investors: Will Yahoo! Inc. (YHOO) Be Affected?


Jack Ma, the CEO of Chinese e-commerce giant Alibaba is in the US these days, convincing notorious investors about the options regarding Alibaba’s potentially $24 billion initial public offering. Bloomberg’s Zeb Eckert discussed Jack Ma’s strategies about investments in the US and said that apparently, Ma is not giving much priority to investors rather customers remain the paramount domain of interest for him. Yahoo! Inc. (NASDAQ:YHOO) has a 23% stake in Alibaba. Yahoo! Inc. (NASDAQ:YHOO)’s stock also experienced some increase in the markets yesterday as Alibaba inches towards its much awaited launch on the US stock market.

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“[…] This is an interesting case, a company that has a very curious ownership structure basically allowing several top lieutenants, the top board people, to make the top decisions in terms of acquisitions. Investors in Alibaba will not have the same kind of access, that they would have with other public companies […],” said Eckert.

Eckert also mentioned Jack Ma’s recent meeting with eight hundred investors in New York, where he explained how he will pitch the IPO and investment options.

Commenting on a recent letter from Jack Ma, in which he ranked investors on the third position in terms of priority, Eckert said that investors definitely want to know exactly who is running this company. He said that Alibaba is growing very fast in different parts of the world, including Russia and its website is becoming extremely popular. Eckert also mentioned Softbank, which is another major stakeholder of Alibaba apart from Yahoo! Inc. (NASDAQ:YHOO). Eckert said that Softbank shares are already going up amid Alibaba’s IPO. Alibaba will be the third most popular internet company to be traded in the US after Google Inc (NASDAQ:GOOGL) and Facebook Inc (NASDAQ:FB)

Yahoo! Inc. (NASDAQ:YHOO) can expect a lot from Alibaba’s launch and experts are predicting that the company can get out of  bad times in the markets very soon.

D.E. Shaw’s firm D E Shaw is one of the shareholders of Yahoo! Inc. (NASDAQ:YHOO), having approximately 16 million shares of the company

Disclosure: None

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