Yahoo has confirmed that they're investing $1 Billion in China's, Ailbaba, an online e-commerce company. The investment will give Yahoo a 40% stake in Alibaba.
The average China city dweller spends the equivalent of only $1,000 a year, so it is little wonder Alibaba reports twice as many sales from businesses as from consumers. Currently, less than one-tenth of the Chinese population is online. "This is a great time to build brand for Yahoo," said [Yankee Group analyst Patrick] Mahoney.
Yahoo CEO Terry Semel talks with by Bambi Fransciso about the Alibaba investment here. They also touch on search.
Marketwatch.com: You mentioned making a bet on the greatest and fastest-growth company in China. Baidu sure looks like it was one to bet on. Are you sure you chose the right company? And did you ever have conversations to invest in Baidu?
Semel: Baidu is doing a good job. Yahoo search is No. 2 -- let's not forget that. We're very excited about our search. Alibaba brought [commerce] to the equation. Yahoo's going to bring communication and search. Technology in search will be a big factor down the road for the new entity.
The Original Search Marketing Event is Back!
SES Denver (Oct 16) offers an intense day of learning all the critical aspects of search engine optimization (SEO) and paid search advertising (PPC). The mission of SES remains the same as it did from the start - to help you master being found on search engines. Early Bird rates extended through Sept 19. Register today!