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Stock Market & Financial Investment News

News Breaks
August 12, 2014
16:50 EDTBABA, YHOOAlibaba restructures arrangement with Small and Micro Financial Services Company
Alibaba disclosed the following in a regulatory filing: "On August 12 we entered into a share and asset purchase agreement, or the 2014 SAPA, and entered into or amended certain ancillary agreements including an amendment and restatement of the Alipay IPLA. Pursuant to these agreements, we restructured our relationships with Small and Micro Financial Services Company and its wholly-owned subsidiary Alipay, and terminated the 2011 framework agreement...We believe this restructuring will strengthen and benefit our company as well as better position us for future growth. Pursuant to the 2014 SAPA, we agreed to sell, subject to receipt of regulatory approvals and other customary closing conditions, certain equity interests and assets primarily relating to the SME loan business and related services, or the transferred business, to Small and Micro Financial Services Company for aggregate cash consideration of RMB3,219M, US$518M. In addition, we entered into software system use and service agreements with entities operating the SME loans business relating to the know-how and related intellectual property that we have agreed to sell together with the SME loan business and related services to Small and Micro Financial Services Company. In calendar years 2015 to 2017, we will receive an annual fee equal to 2.5% of the average daily book balance of the micro loans made by such entities. In calendar years 2018 to 2021, we will receive an annual fee equal to the amount paid for the calendar year 2017, or collectively the SME annual fee. In connection with the 2014 SAPA, we also entered into the amended Alipay IPLA, pursuant to which we will license certain intellectual property and provide certain software technology services related to Alipay’s current operations and the SME loan business. Under the amended Alipay IPLA, we will receive royalty streams and a service fee, or collectively the profit share payments, which will be paid at least annually, amounting to the sum of an expense reimbursement plus 37.5% of the consolidated pre-tax income of Small and Micro Financial Services Company, subject to certain adjustments. In addition, if we acquire any equity interest in Small and Micro Financial Services Company, we will transfer an agreed portion of the underlying intellectual property to Small and Micro Financial Services Company at the time of such equity issuance. At the same time, the profit share payments will also be reduced in proportion to such equity issuances made to us. Pursuant to the terms of the 2014 SAPA, in the event of an initial public offering of Small and Micro Financial Services Company or Alipay at an implied equity value exceeding US$25B which results in gross proceeds of at least US$2B , or a qualified IPO, if our total ownership of equity interests in Small and Micro Financial Services Company has not reached 33%, we would be entitled at our election to receive a one-time payment equal to 37.5% of the equity value of Small and Micro Financial Services Company as determined immediately prior to such qualified IPO. There is no cap on the maximum value of such liquidity event payment. If we acquire equity interests in Small and Micro Financial Services Company in an aggregate amount less than 33%, the percentage of Small and Micro Financial Services Company’s equity value used to calculate such liquidity event payment will be adjusted proportionately."
News For BABA;YHOO From The Last 14 Days
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September 8, 2014
16:18 EDTBABA, YHOOOn The Fly: Closing Wrap
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16:00 EDTYHOOOptions Update; September 8, 2014
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12:18 EDTYHOO, BABAOn The Fly: Midday Wrap
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11:29 EDTYHOOStocks with call strike movement; GPRO YHOO
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11:05 EDTYHOOOptions with increasing implied volatility
Options with increasing implied volatility: NPSP GILD VNET AVNR GTAT YHOO RHT VRTX SDRL COV MYL
10:03 EDTBABAAlibaba initiated with an Overweight and $100 price target at Atlantic Equities
Atlantic Equities initiated Alibaba with an Overweight and $100 price target. The firm said Alibaba is the dominant Chinese ecommerce company in a rapidly growing market. The analyst expects its take rate expansion to accelerate as sales mix shifts to Tmall and the drag from the mobile shift eases.
09:40 EDTYHOOActive equity options trading on open
Active equity options trading on open according to Track Data: AAPL TWTR TSLA YHOO BAC FB MSFT NFLX GILD MCD
09:09 EDTYHOOYahoo volatility elevated into Alibaba roadshow
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08:05 EDTBABAAlibaba lower than forecast valuation seen giving room to raise, Bloomberg says
Alibaba is seeking a valuation of as much as $162.7B and could raise as much as $21.1B via its U.S. initial public offering, but analysts surveyed in July put its value at $187B and JG Capital analyst Henry Guo believes the lower than expected value estimate will give the company room to raise the IPO price during its roadshow, said Bloomberg. Reference Link
06:46 EDTYHOOYahoo acquires, shuts down, Luminate
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06:45 EDTYHOO, BABAYahoo to receive $8.8B in first tranche of Alibaba stake, says Cantor
Cantor Fitzgerald says that based on Alibaba's (BABA) updated F1 on Friday, Yahoo (YHOO) will receive $8.8B in the first tranche of its Alibaba stake. Cantor estimates that at the mid-point, Alibaba's proposed market cap is $158.3B, with Yahoo's stake valued at $33B. The firm notes this is below its $180B estimate. Cantor says Yahoo is only selling 140M shares in the first tranche, leaving 384M shares to be sold in a year-plus, likely at a higher valuation and on better tax terms. Cantor keeps a Buy rating on the stock.
06:33 EDTYHOOYahoo's core business valued at $11B, WSJ reports
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06:28 EDTYHOO, BABAAlibaba recently added three new partners, WSJ reports
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06:04 EDTYHOOStocks with implied volatility top IV index mean; AMD YHOO
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September 5, 2014
16:01 EDTYHOOOptions Update; September 5, 2014
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15:51 EDTBABAAlibaba to set IPO price in $60-$66 range, CNBC says
12:05 EDTBABAAlibaba to begin trading on Thursday, September 18, CNBC says
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11:49 EDTBABAAlibaba to let employees, 'friends,' buy shares in upcoming IPO, WSJ reports
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09:35 EDTYHOOActive equity options trading on open
Active equity options trading on open according to Track Data: AAPL GILD TSLA YHOO WFM SLW ABX GOOG FB BIDU
06:01 EDTYHOOStocks with implied volatility top IV index mean; AMD YHOO
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