China Investment Corporation Buys Yahoo!'s Stake

In a strategic move, China Investment Corporation (CIC) led a consortium of Chinese investors to acquire Yahoo!'s 40% stake in Alibaba. This stake was originally purchased by Yahoo! through a variable interest entity structure, which allowed the company to invest in Alibaba for $1 billion. The investment proved to be highly lucrative, as it later generated approximately $10 billion during Alibaba's initial public offering. The acquisition of Yahoo!'s stake by CIC marked a significant shift in the ownership structure of Alibaba, reflecting the growing influence of Chinese investment firms in the technology sector. The deal not only underscored the value of Alibaba in the global market but also highlighted the increasing interest of Chinese investors in high-growth technology companies. The transaction facilitated a more direct investment approach for CIC and its partners, allowing them to capitalize on Alibaba's growth trajectory and expanding market presence. This acquisition was part of a broader trend where Chinese investment firms sought to enhance their portfolios by investing in established technology firms, thereby gaining access to innovative business models and technologies that could be leveraged in the domestic market. The impact of this acquisition extended beyond financial returns, as it also signified a deeper integration of Chinese capital into the global technology landscape, fostering collaboration and innovation across borders.