Will help sell the lot later on
Yahoo is about to sell 15 to 25 percent of Alibaba Group's stock back to China's largest e-commerce company.
The company has been trying to off-load the problematic shares as a way of making some cash. However negotiations between the pair have stalled a number of times. This share sale is designed to remove complexities that have stuffed the deal up in the past.
A $17 billion tax-free asset swap between the two companies fell apart in February. The latest deal would not be tax-free and would be much more straightforward.
"The overall complexity of this deal is much simpler. There's no IRS risk, there's no complications with regards to the identification of assets," the company stated. In a best case scenario, a deal could be weeks away.