Yahoo has revealed plans to retain more than half of its stake in Alibaba following the Chinese e-Commerce firm’s initial public offering.
Yahoo’s latest decision comes after signing an agreement, which will see it sell only 40% of its shares (208m) in the much-awaited IPO, which would value Alibaba at about $60bn, compared to the original plan to sell 261.5m shares.
Alibaba board member Yahoo chief development officer Jacqueline Reses said: "Yahoo has always believed in the long-term potential and value of Alibaba, and we are pleased to maintain a larger stake in the company’s future."
Established by billionaire Jack Ma, Alibaba is anticipated to file for an estimated $15bn IPO next year, which would value the e-Commerce firm at over $100bn.
Alibaba executive vice chairman and board member Joe Tsai said that Yahoo has been a supportive shareholder and the company would further partner to expand its business for future growth.
"Under its new leadership, Yahoo has made it a priority to build a good relationship with Alibaba," Tsai said.
Yahoo CEO Marissa Mayer reported that the firm was considering increasing revenue in 2014, pointing to a 20% rise in the monthly active users to 800m since she took control in July 2012.
