Yahoo (YHOO.NASDAQ) and Alibaba Group say they have come to an agreement in principle to settle their dispute over the ownership transfer of Alibaba’s online payments business, the Wall Street Journal reported. Yahoo, which owns about 40% of Alibaba, said in May that Alibaba had secretly spun off Alipay earlier this year to a new company largely owned by Alibaba CEO Jack Ma. The Chinese e-commerce firm argued the transfer was legal and Yahoo knew of the plans. The proposed resolution includes a promise from Alibaba and Ma that Alipay will not be used to siphon off revenue from Taobao – a giant Alibaba-owned e-commerce site – in the future. Furthermore, the agreement may also include plans for Ma’s new company to compensate Alibaba Group for the transfer.
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