Ahead of the Bell: Yahoo
NEW YORK (AP) — Yahoo Inc. shares rose in premarket trading Monday after Chinese e-commerce giant Alibaba Group said it plans to go public on a U.S. stock exchange, possibly raising up to $15 billion. Yahoo owns a 24 percent stake in Alibaba.
The confirmation on Sunday of a planned U.S. listing ended months of speculation over where Alibaba would list after talks for an initial public offering in Hong Kong fell apart last year. A $15 billion listing would be larger than the Facebook IPO.
Alibaba is one of the world's biggest Internet companies and says more than $150 billion worth of merchandise changes hands on its online platforms each year, more than Amazon and eBay combined.
The company began as a service to link Chinese suppliers with retailers abroad and has branched out into retail e-commerce. It is little known abroad but has launched two consumer-oriented services in the United States.
It gave no details of the timing or size of the initial public offering or on which exchange it would take place.
Analysts have estimated that an Alibaba IPO could raise up to $15 billion and value the company at more than $100 billion. Facebook Inc.'s IPO in June last year raised $16 billion and at the time valued the company at more than $100 billion.
In premarket trading, Yahoo shares rose $1.40, or 3.7 percent, to $39 about an hour ahead of the market opening.