Alibaba.com and Yahoo Inc. developed a long-term strategic partnership in October 2005. In this partnership, Alibaba.com attained Yahoo China and acquired management control of Chinese version of Yahoo and its all operations. The main features of the partnership between Alibaba Group’s and Yahoo! Inc. are:
- Developing online search to Alibaba.com to develop Alibaba’s e-commerce business.
- Help to make Alibaba the largest Internet company of China in B2B e-commerce, B2C e-commerce, website-based software solutions, online payments, communications and search.
- Providing access to Alibaba Group to the world class global internet technology of Yahoo Inc. to make online businesses strong and stable in China as well as around the world.
The chairman and chief executive office of Yahoo Mr. Terry Semel said, “Alibaba and Yahoo developed a marvelous internet partnership in the fastest-growing Internet market today. Through this strategic partnership, we will bond and created a strong e-commerce solution, communications and online advertising efficiency in the new and latest technological ways for Chinese businesses, manufacturers, suppliers and buyers under the management of a strong team of internet experts.”
On this occasion, Jack Ma, the chief executive officer of Alibaba said, “Today is the great strategic partnership between Alibaba and Yahoo Inc. has been created. With addition of Yahoo China into the portfolio of Alibaba, we are adding some new features and services like search and online communications to our already running e-commerce services. We hope that the growth of Yahoo China will create great opportunities for businesses and consumers in not only in China but also around the world.”
As a result of this great partnership, Yahoo Inc. was able to own more than 40% economic interest in which it had 35% voting rights due to which it became the largest strategic investor in Alibaba. Through this strategic partnership, Alibaba.com became the only internet company of China which has a growing position in the considerable sectors such as B2B e-commerce, B2C e-commerce, online payment, communications and search.