Yahoo may reduce its 40% stake in Alibaba

Yahoo (YHOO.NASDAQ) may cut its current 40% stake in Alibaba Group (1688.HKG) to about 15%, Bloomberg reported, citing people familiar with the matter. The deal values the assets at more than US$17 billion, and may allow Alibaba to repurchase the shares without paying taxes. Yahoo purchased its share of Alibaba in 2005 for about US$1 billion. Alibaba has been seeking to buy back the shares since the departure of Yahoo CEO Carol Bartz in September, who has opposed a sale. The deal would also include selling the remaining share of Yahoo Japan to co-owner Softbank (9984.TYO). Both Alibaba and Softbank have been putting pressure on Yahoo to find a solution, as the company loses market share to rival Google (GOOG.NASDAQ).