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Yahoo, Alibaba and Softbank have reached the agreement on Alipay

Yahoo!, SoftBank and Alibaba Group jointly announced that they have reached an agreement on Alipay. Under the agreement, Alibaba Group will continue participating in Alipay’s future financial performance, including a future IPO or other liquidity events. The agreement structures the relationship between Taobao and Alipay in order to preserve the value within Taobao, which provides that Alibaba group is appropriately compensated for the value of Alipay.

Alipay provides the payment processing services to Alibaba Group and some affiliates including Taobao, which is the largest online retail website in China, and to the third parties.

The agreement seems to be welcomed by all three parties. Jack Ma, Alibaba group’s chairman and CEO said, “The agreement is good for Alibaba Group and it’s stakeholders, as well as customers, employees and shareholders.” Yahoo CEO, Carol Bartz said, “As a result of this constructive process, we have an agreement that preserves the value of Taobao, provides for profit sharing at Alipay, and creates a structure to allow Alibaba Group to participate if Alipay’s value is realized in an IPO or other liquidity event.” Masayoshi Son, Soft Bank CEO also said, “This agreement was in part made possible by the strong long-term relationship and trust that exists between the principals at Alibaba Group, Yahoo and SoftBank, and also lays the foundation for Alibaba Group to continue its impressive growth under the dynamic leadership of Jack Ma.”

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Motoko Hunt

President & Search Marketing Strategist at AJPR
Motoko Hunt manages the SEO for all of Adobe's properties in Japan and the APAC region. Prior to joining Adobe, Motoko established AJPR in 1998; she has been providing search marketing consulting services targeting Japan and Asia to companies around the world. Her services have made a big impact on the search marketing campaigns of some of the world's most popular multi-national brands. A number of her articles have been published on industry websites and printed media including MultiLingual Computing and the International Journal of Localisation. She also writes about the Japanese online market on her blog at AJPR and contributes to several online magazines in Japan and Asia. She served as a member of the board of directors of SEMPO in 2010-2012, and is a chairperson of the SEMPO Asia-Pacific Committee.

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