Alibaba already holds a 28% stake in AMAP. Now, China’s biggest online retailer says it will pay $21 per AMAP share to purchase the remainder of the company. The Alibaba offer is 27% higher than AMAP’s closing price on Friday. That would price the Alibaba full acquisition of AMAP at $1.45 billion, Reuters notes.
AMAP said that its board would appoint a special committee to consider the all-cash Alibaba proposal.
Analysts are looking forward to an eventual Alibaba IPO in the U.S. Acquiring AMAP would allow Alibaba to boost its presence in mobile services.
News of the deal sent YHOO stock up about 2% in premarket trading.