Yahoo to invest US one billion in Chinese e-commerce site Alibaba. 1. Wide shot presser given by Yahoo! and Alibaba.com
2. Close up Yahoo! and Alibaba.com logo
3. Daniel Rosensweig, Chief Operating Officer (COO) of Yahoo! being introduced and standing up
4. Wide shot media
5. Ma Yun (also known as Jack Ma), CEO (Chief Executive Officer) of Alibaba.com walking to podium
6. SOUNDBITE (Mandarin) Ma Yun, CEO, Alibaba.com:
"We are here to announce that Alibaba.com has purchased all the assets of Yahoo! China."
7. Wide shot Ma speaking to press
8. SOUNDBITE (Mandarin) Ma Yun, CEO, Alibaba.com:
"We believe that this merge will have great impact on China's economy. With this cooperation, Yahoo! will help all Alibaba's Chinese suppliers and all the medium and small sized Chinese exporters by given them publicity on the Yahoo! websites."
9. Cutaway media
10. Yahoo! COO Daniel Rosensweig, walking to podium
11. SOUNDBITE (English) Daniel Rosensweig, COO, Yahoo!:
"We fell this is the best approach for the Chinese market. As Jack (Ma Yun) said it is very similar to the Yahoo's success in Japan by finding a great local partner and a great management team with great assets and combining Yahoo's brand, its assets and its global leading technology to be able to compete and to be successful in what we believe will be the world largest internet market in just 5 years."
12. Various shots of the websites of Alibaba.com
Yahoo Inc. announced on Thursday it would pay US$1 billion in cash to acquire a 40 percent stake in the Chinese e-commerce firm Alibaba.com, heating up the race to dominate China's fledgling online auctions industry.
As part of the deal, Yahoo has also agreed to contribute its China business to Alibaba, according to a joint statement from the two companies. The combined entity will also include 3721.com, a Chinese language search engine that Yahoo acquired last year, it said.
The agreement makes Yahoo the largest strategic investor in Alibaba, which runs both Chinese- and English-language auction sites serving foreign companies looking for Chinese wholesale suppliers and individual Chinese buyers and sellers.
The alliance is the biggest deal yet in a flurry of investments in China by foreign Internet companies eager for a share of a market with more than 100 million people online.
It also represents a challenge to U.S.-based eBay, the world's biggest online commerce company, which in 2003 bought a Chinese portal, eachnet.com.
Yahoo will have 35 percent of voting rights in Alibaba as a result of the investment, in a deal expected to be completed in the fourth quarter of this year, according to the statement distributed at a press conference in Beijing.
Yahoo expects China to be the world's biggest Internet market within five years, he said.
Alibaba was founded in 1999 by Jack Ma, who has become one of China's most prominent Internet entrepreneurs. The company is based in the eastern Chinese city of Hangzhou, southwest of Shanghai.
News of the deal comes just days after an initial stock offering in the United States by another Chinese online firm, search engine Baidu.com, set off a frenzy of buying. Its shares soared more than 350 percent in their first day of trading last Friday before declining slightly this week.
The Chinese government said last month that the number of people online in China had reached 103 million - the second-biggest population of Web users after the United States.
But Chinese online commerce is still in its infancy and consumer spending is low in a society where urban incomes average just $1,000 a year.
Ma declined to give details Thursday on how Alibaba would use Yahoo's billion-dollar investment.
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