Yahoo in $1bn Chinese online deal
Web search giant Yahoo has paid $1bn (£556m) for a stake in China's biggest e-commerce firm, Alibaba.com.
The US company will now hold a 40% stake - and 35% of the votes - in the Chinese firm, which runs the country's biggest auction and trading sites.
The investment positions Yahoo to compete with world auction leader eBay in a key market. Yahoo is to merge its Chinese search engine operations with Alibaba.
The Chinese firm, in which Yahoo is now the biggest single investor - as well as the biggest investor in the sector in China to date - employs some 2,000 people in the eastern city of Hangzhou.
Yahoo already leads eBay in Japan via its relationship with Softbank
The Chinese government last month reported that the number of people in the country using the internet had reached 103 million, putting it second only to the US.
Leading overseas companies have recently been investing heavily in China's booming online market.
EBay paid $180m for Shanghai-based Eachnet and US web firm Interactivecorp - which owns Expedia - paid $168m for a majority stake in Chinese online retailer Elong.
And online book retailer Amazon bought Chinese rival Joyo for $75m.
Resource: BBCNews
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