Chinese Internet company Alibaba Group, which runs Yahoo’s China operation, is reportedly getting ready to join the already vocal chorus protesting the potential Microsoft/Yahoo marriage.
Alibaba is concerned about how China would view the merger if Microsoft’s $44.6 billion bid is eventually accepted, according to reports. Yahoo is Alibaba’s largest shareholder, owning about 39% of the company.
Alibaba’s original agreement with Yahoo gives Alibaba a strong position of influence on how shares would be transferred to any new owner — and the firm plans to assert its authority, Reuters reports.
The company sees the Microsoft takeover as inevitable and is concerned that Beijing authorities will look askance at Microsoft’s control of an important Chinese firm because the software giant has a reputation for using “monopolistic tactics” to control its holdings, a source told Reuters.
Beijing, in turn, has a reputation for influencing the terms and even delaying mergers indefinitely. Stay tuned.