According to the sources, Alibaba Group Holding is in talks with Singapore’s Temasek Holding to provide them with funds to buy Yahoo! Inc.
The source, according to Bloomberg, who refused to reveal itself as this is a part of a confidential discussion, said that Temasek, which is a state owned investment company may accept the offer to provide finances in return for a considerably bigger share of the Alibaba Group which is a privately owned company. Temasek is not interested in the ownership of Yahoo! according to one of the sources.
As per the valuation done by Singapore investor last month, Yahoo’s stake in Alibaba may be worth around $13 billion.
If Temasek backs Alibaba then it will result in aid Jack Ma’s bid to gain more control of the company he founded – Alibaba, and also this will result into increase of Temasek’s investment in China.
In July Temasek, which is S$ 193 billion ($147 billion) sovereign wealth investor, said that it is “bullish” in China and they are seeking more deals in China.
Alibaba is China’s biggest e-commerce company and is valued at $32 billion in an investment last month by Temasek. Also in 2005, to acquire holding in Alibaba, Yahoo! paid $1 billion together with its operations in China.