Business

Yahoo shares climb 5% on Alibaba stake sale report

Alibaba sign
Image caption Alibaba Group is one of the world's biggest internet conglomerates.

Shares in internet giant Yahoo have risen over 5% after reports that it is close to selling its stake in Alibaba Group, the Chinese e-commerce company.

Yahoo is preparing to sell half its 40% stake back to Alibaba, according to AllThingsD.com, citing sources close to the deal .

The sale, which could raise about $7bn (£4.4bn) for Yahoo, would involve a share buy-back followed by an eventual flotation of the Chinese group.

Yahoo shares were up 5% at $15.60.

The deal would be a welcome piece of good news for the struggling US internet company.

It has been losing ground to rivals Google and Facebook in the online advertising market.

And on 13 May, Scott Thompson quit as Yahoo chief executive after just five months in the post, following the discovery of inaccuracies in his CV.

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