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Shares of Yahoo! Up After News of Alibaba IPO Hits Market

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Alibaba Group Holding Ltd., one of the world's largest e-commerce companies, is headed to Wall Street for an Initial Public Offering or IPO, after it struggled to get Hong Kong regulators to approve its proposed governance structure.

According to Bloomberg, investment banks are valuing Alibaba at $200 billion, and are saying that Alibaba plans to work with investment firms, Credit Suisse Group AG, Deutsche Bank AG, Goldman Sachs Group Inc., JPMorgan Chase & Co., Morgan Stanley and Citigroup Inc.

This IPO might just might be the largest behind Facebook Inc. (NASDAQ: FB), who debuted in 2012, the e-commerce site has not decided on when it will file for the listing, which exchange to list on, or even how much to raise or how much to sell.

According to a valuation of $200 billion, this e-commerce company would be the second-largest Internet Company based on market-capitalization, behind Google Inc.(NASDAQ: GOOG)

Back in 2012 Alibaba bought back 20 percent of shares from Yahoo! Inc., back then Alibaba was valued at about $35 billion. Yahoo! (NASDAQ: YHOO) still owns 24 percent of the e-commerce website. Japan's Softbank Corp. owns 37 percent of the site.

Due to these factors and many other Alibaba has officially decided to start the process for an IPO in the United States, the company has also commented on a potential listing in China and has said, “should circumstances permit,” it will decide to file in China.

Shares of Yahoo! were up three percent in pre-market trading on the news of Alibaba going public, and have since continued to surge upward.

Posted-In: News IPOs

 

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