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Yahoo to give US$1 billion in China deal
(Reuters)
Updated: 2005-08-10 18:52

Based in the eastern China city of Hangzhou -- about two hours from Shanghai -- Alibaba's main China operations include a business-to-business e-commerce site; an online auction site called Taobao that competes with eBay in China; and a recently launched online payment system called Alipay.

Yahoo's main China business consists of its search service, which it got two years ago when it purchased popular local search site 3721.com for $120 million.

The pairing would combine Alibaba's 2,000-plus employees with Yahoo's, which number in the hundreds.

Yahoo's handover of its China operations to a locally based company would mark a shift in recent investment patterns by global Internet giants, which have spent the past three years snapping up homegrown Chinese industry leaders.

EBay entered China though a $180 million purchase of Shanghai-based EachNet. Expedia owner InterActiveCorp has paid $168 million for 52 percent of Chinese online travel agent eLong.

Online retailer Amazon.com purchased local player Joyo.com for $75 million, and online job search leader Monster.com bought a 40 percent stake in ChinaHR.com for $50 million.


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