Tags: Yahoo | ABC | News | Alibaba

Yahoo Strikes Alliance With ABC News as Alibaba Weighs Offer

Monday, 03 Oct 2011 10:44 AM

Yahoo! Inc., the most-visited U.S. Web portal, struck a partnership with ABC News as China’s Alibaba Group Holding Ltd. said it may be interested in acquiring Yahoo.

ABC News, part of Walt Disney Co., will become the leading provider of news for Yahoo! News and editorial teams from the both organizations will collaborate on stories for both websites, the companies said in a statement today. Yahoo and ABC News will also combine bureaus in New York, Washington and Los Angeles, they said.

The partnership comes as Yahoo, struggling to compete with Google Inc. and Facebook Inc., may face a possible acquisition bid from Alibaba. The Hangzhou, China-based company, in which Yahoo holds a 40 percent stake, may be interested in Yahoo, Alibaba Chief Executive Officer Jack Ma said at a Stanford University event near Palo Alto, California, on Sept. 30.

“We are very interested in Yahoo,” said Ma. Talks have snagged over “political issues,” rather than financial ones, he said.

Yahoo is reviewing strategy and seeking a new CEO after ousting CEO Carol Bartz, who failed to reverse a growth slowdown or repel competition from Google and Facebook. The process for reviewing strategic options is likely to take “months, not weeks,” according to the memo, which was signed by co-founders Jerry Yang and David Filo and Chairman Roy Bostock.

Silver Lake Interest

As of mid-September, private-equity investor Silver Lake was considering a bid for Yahoo, people involved in the deliberations said at the time. As part of a deal, Silver Lake would sell off Yahoo’s Asian assets and then attempt to turn around the main operations or find a buyer for that business, the people said. Representatives from Silver Lake have approached other companies to gauge interest in purchasing Yahoo’s main business, one person said.

Alibaba, also part-owned by Japan’s Softbank Corp. and Singapore’s Temasek Holdings Pte, is expanding in search-engine services after dominating China’s e-commerce market. In 2009, Its Hong Kong-listed Alibaba.com Ltd. unit acquired two U.S. companies to step up international expansion.

“We are very interested in Yahoo because our Alibaba Group is so important to Yahoo, and Yahoo is also very important to us,” Ma said, when asked if he would buy the company. “There are so many people who are interested in that, and we are also talking to them.”

Dana Lengkeek, a spokeswoman for Sunnyvale, California- based Yahoo, declined to comment.

ABC News Deal

Yahoo rose 76 cents, or 5.8 percent, to $13.93 at 10:12 a.m. New York time on the Nasdaq Stock Market, after rising as much as 87 cents. The stock had dropped 21 percent this year before today.

Under the agreement announced today, ABC News will be used throughout Yahoo News sites and on Yahoo’s front page, the companies said. GoodMorningAmerica.com will launch on Yahoo today with three online-first videos, they said. The companies will continue to control the content on their respective Web pages.

“This relationship will give ABC News an unrivaled ability to reach across the Web, combining Yahoo!’s vast distribution and cutting-edge technology with our award-winning journalism,” said Ben Sherwood, president of ABC News.

© Copyright 2017 Bloomberg News. All rights reserved.

   
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Yahoo! Inc., the most-visited U.S. Web portal, struck a partnership with ABC News as China s Alibaba Group Holding Ltd. said it may be interested in acquiring Yahoo. ABC News, part of Walt Disney Co., will become the leading provider of news for Yahoo! News and editorial...
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Monday, 03 Oct 2011 10:44 AM
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