Alibaba Group, Yahoo! Inc and Softbank reached agreement over the controversial transfer of Alipay to a company controlled by Jack Ma, the founder and CEO of Alibaba. Under the agreement, Alibaba will receive no less than $2 billion and no more than $6 billion in proceeds from an IPO of Alipay or other liquidity event or 37.5% of the total equity value of Alipay, and it will continue to participate in Alipay’s future financial performance.

Also, according to the agreement, Alipay will continue to provide payment processing services to Alibaba Group and its subsidiaries including Taobao. Alipay claims to be the largest third-party payment solution in China, while Taobao is the largest domestic ecommerce platform.

The deal ends a public dispute among Yahoo, Softbank and Alibaba over Yahoo’s accusation of Jack Ma “stealthily transferring” Alipay to an entity owned by Jack Ma without notifying other shareholders.

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Ben Jiang

Listener of startups, writer on tech. Maker of things, dreamer by choice.