[BABA] On the announcement that Alibaba will offer Alipay as an IPO, the Chinese internet giant becomes the 6th largest company in the world.
Shares are up on the announcement that Alibaba will launch the Alipay IPO
The announcement from Jack Ma, Executive Chairman, was made when he appeared on CCTV, the state run TV channel in China. Ma said that Alipay "will definitely go public”.
The financial arm of Alibaba was not part of the initial Alibaba Group listing on the New York stock exchange this year and Jack Ma did not say if it will be Alipay or parent company, Zhejiang Ant Small and Micro Financial Services Group, that will list.
The Alibaba annual singles day festival was also launched today. It took 20 minutes to achieve sales of $1 billion; by earlier this morning GMT, sales were up to $6 billion.
Alongside Alibaba’s success stand the shareholders that are benefitting from their investments; most notably Yahoo who own a 22.4% stake. After Yahoo’s solid results in October, giving 1% growth in revenue ex-TAC and 1% growth in GAAP revenue, the company may have second thoughts about a merger with AOL that was being proffered by activist investors Starboard at the end of September this year.
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