Chinese e-commerce company Alibaba will
continue to receive Alipay’s payment processing services according
to a new agreement.
The agreement between Alibaba Group, Yahoo and
SoftBank will adhere to two principles –creating a relationship
structure between Alipay and China’s online retail website Taobao,
and adequately compensating Alibaba group for the value of
Alipay.
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As per the agreement, Alibaba will
also receive a share in Alipay’s financial proceeds from an
IPO or other liquidity events.
“Over the last few months, we have worked
cooperatively with our partners at Yahoo and SoftBank to reach an
agreement that serves the interests of all parties,” said Jack Ma,
group chairman and CEO of Alibaba.
“This agreement is good for Alibaba Group and
its stakeholders, including customers, employees and shareholders.
Most importantly, Alipay was able to secure the license it needed
to continue operating.”
The agreement is subject to regulation and is
expected to close around the year end.
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