Alibaba Group (1688.HK), Yahoo! (YHOO.NASDAQ) and Softbank (9984.TYO) reached an a settlement agreement on Alipay, ending a four-month battle over investor compensation following a controversial ownership change, Bloomberg reported. Under the new agreement, the three firms said that Alibaba will continue to participate in Alipay’s future financial performance. Alibaba will get at least US$2 billion and up to US$6 billion of a possible future IPO or sale of Alipay. Alipay will pay Alibaba royalties fees and 49.9% of its earning before any sale. Yahoo! said in March that it was not notified of Alipay’s ownership transfer in August 2010. The US company’s stock price has lost almost 30% over the past quarter on fears that its future in China might be compromised.
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