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Bao Fan/China Daily
Jack Ma, chairman of Alibaba Group Holding Ltd, at a news conference in China this year. Alibaba has hired a Washington lobbying firm as part of a possible bid to own Yahoo Inc, which has a roughly 40 percent ownership in Alibaba. Alibaba earlier failed to buy back the part of itself that is owned by the US-based Internet portal.
Hiring of lobbying firm hints at Yahoo interest
Agencies
Published: Dec 30 2011 8:21
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WASHINGTON / NEW YORK - Alibaba Group has hired a Washington DC lobbyist, a decision signalling that the Chinese company would be willing to make a bid for all of Yahoo Inc in the event that the company's talks to unwind their Asian partnership fail.

Japan's Softbank Corp, which owns a 30 percent stake in the e-commerce company Alibaba and is a partner in Yahoo Japan, is also listed as an Alibaba affiliate in a disclosure from Duberstein Group Inc, a lobbying firm.

The founder of Alibaba Group, Jack Ma, said in September that he was eager to buy all of Yahoo if that opportunity presented itself.

Hiring a Washington DC lobbying firm could help Alibaba respond to any US political opposition to a complete takeover of Yahoo.

Chinese companies, such as the telecommunications giant Huawei Technologies Co, have run into opposition when they have tried to buy US assets over the years.

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    "The national security concern is sometimes just an excuse for commercial concerns for any country, but certainly for the United States," said Mark Natkin, managing director of the Beijing-based consulting company Marbridge Consulting.

    "I don't think there should be a big concern (about Alibaba buying Yahoo). Users may share or keep as much data as they like.

    "If they subscribe to Yahoo and (they know) Yahoo is owned by a Chinese company, they are going to have to make the decision themselves," Natkin added.

    Alibaba, Softbank and Yahoo have been looking to unwind their complex web of relationships. Alibaba retained Duberstein in the fall, when it was discussing a proposal with private equity firms to carve up Yahoo, a source familiar with the matter said.

    While they would make a bid together for the whole company, the idea was for the buyout firms to take over Yahoo's US operations and for Alibaba and Softbank to get the Asian assets.

    But a buyout of Yahoo has now become less of a priority. The US Internet company is considering a proposal that would have only to do with the Asian assets that Alibaba and Softbank want.

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