Yahoo: Relationship Crisis with Alibaba in China Harvard Case Solution & Analysis

In October 2005, Yahoo! Inc ("Yahoo") formed a partnership with Alibaba Group Holding Limited ("Alibaba"), the largest e-commerce company of the country. The company has invested $ 1 billion in Alibaba for 40% of the shares and transferred ownership Yahoo! China ("Yahoo China") in Alibaba. However, some media have described the relationship between the two companies since 2005 as anywhere from rocky to quite ugly. Yahoo decision in mid-2009, to advance to Microsoft technologies in the search led to the search engine Alibaba Sohu.com local rival Yahoo. Alibaba then works with eBay instead of Yahoo Inc in entering the U.S. business-to-business market. Meanwhile, Yahoo is in direct competition with Yahoo China to advertisers by attracting companies in southern China advertising Hong Kong Yahoo,. Alibaba made a loss in its activities in 2006 and the share of Yahoo China search revenue decreased from 27% in 2005 to a negligible level in 2010. But Yahoo has rejected the offer Alibaba, to buy a share, because he wanted to wait for the IPO, two major subsidiaries Alibaba before any output. In light of the growing tensions with Alibaba, Yahoo board wishes to reconsider its approach to the management of the partnership, and figure out what to do to fix the links. "Hide
by Zhigang Tao, Penelope Chan Source: University of Hong Kong, 34 pages. Publication Date: June 12, 2012. Prod. #: HKU970-PDF-ENG

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