Yahoo shares pop 3% on Japan stake rumors

Yahoo stock jumps on that the company is planning to unload its stake of a Japanese joint venture.Click the chart for more on YHOO. By Julianne Pepitone, staff reporter


NEW YORK (CNNMoney) -- Shares of Yahoo rose more than 3% Wednesday on rumors that the company is planning to unload its share of a Japanese joint venture in order to free up cash.

Reuters posted an article early Wednesday saying Yahoo is in late-stage talks to transfer its 35% stake in Yahoo Japan to Softbank Corp. Softbank already controls 42% of Yahoo Japan.

Later in the morning, the New York Times' DealBook blog posted a similar story. Yahoo (YHOO, Fortune 500) shares closed 3.3% higher Wednesday, at $16.63.

The move could bring Yahoo $8 billion, and the company would likely then turn its attention to China, Reuters said. Yahoo owns 39% of Chinese Internet company Alibaba Group.

Alibaba itself owns Yahoo China as well as three massive Chinese properties: B2B platform Alibaba.com, online payment service Alipay and e-commerce site Taobao. Alibaba went public on Hong Kong's stock exchange in 2007 and raised $1.7 billion -- at the time the second-biggest Internet IPO ever, behind only Google.

It's been so successful, in fact, that in September Alibaba offered to buy back Yahoo's stake for about $11 billion. Yahoo declined.

Alibaba suffered a huge PR blow last month, when it reported that 2,326 high-volume sellers defrauded customers over the course of two years with the assistance of nearly 100 Alibaba employees. CEO David Wei resigned as a result.

Still, the Alibaba stake is one of Yahoo's bright spots, as it has lost market share in display advertising -- once its biggest stronghold -- to rivals Google and Facebook.

But companies struggle to penetrate a Chinese search market that's dominated by native Baidu. Last March, Google (GOOG, Fortune 500) moved its servers out of mainland China and said it would stop censoring its search results in the country. By July, Google said it had renewed its license and would be allowed to continue operating in China. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 17,098.45 18.88 0.11%
Nasdaq 4,580.27 22.58 0.50%
S&P 500 2,003.37 6.63 0.33%
Treasuries 2.34 0.01 0.39%
Data as of 12:35pm ET
Company Price Change % Change
Bank of America Corp... 16.09 0.08 0.50%
Apple Inc 102.50 0.25 0.24%
Intel Corp 34.92 0.27 0.78%
Facebook Inc 74.82 0.96 1.31%
General Electric Co 25.98 -0.03 -0.12%
Data as of Aug 29

Sections

The deal would value Vice at $2.5 billion. The online media company would also create content for the cable network, delivering a wider audience. More

Gas prices are falling to nearly $3 a gallon in some parts of South Carolina, and that will soon be common in much of the country. More

Netflix told the FCC that its speed on the Comcast network became so slow that customers began dropping their service. More

The Coolest Cooler is the most successful Kickstarter campaign in the site's history, raising $13.3 million from over 62,000 backers. More

Five CNNMoney readers share stories about saving that you can learn from: What they would do differently if they had another chance. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.