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Alibaba hires US lobbying firm to help with Yahoo bid | Alibaba hires US lobbying firm to help with Yahoo bid |
(40 minutes later) | |
China's Alibaba Group has hired a US lobbying firm, fuelling further speculation that it is preparing a bid for Yahoo. | China's Alibaba Group has hired a US lobbying firm, fuelling further speculation that it is preparing a bid for Yahoo. |
It has hired Duberstein Group, a firm headed by former White House chief of staff, Kenneth Duberstein. | It has hired Duberstein Group, a firm headed by former White House chief of staff, Kenneth Duberstein. |
In October, Alibaba's founder Jack Ma said he was willing to buy Yahoo and there have been recent reports linking the firm to such a move. | In October, Alibaba's founder Jack Ma said he was willing to buy Yahoo and there have been recent reports linking the firm to such a move. |
There have been fears that any deal may face political opposition in the US. | There have been fears that any deal may face political opposition in the US. |
The Duberstein Group filed a declaration about it being hired by the Alibaba Group with the US Senate on 23 December. | The Duberstein Group filed a declaration about it being hired by the Alibaba Group with the US Senate on 23 December. |
Over-cautious? | Over-cautious? |
Chinese technology companies such as Huawei have faced political opposition over moves to acquire firms in the US. | Chinese technology companies such as Huawei have faced political opposition over moves to acquire firms in the US. |
However, analysts said that while national security was cited as a reason to block moves by Huawei, it may not be the same for Alibaba. | However, analysts said that while national security was cited as a reason to block moves by Huawei, it may not be the same for Alibaba. |
They said that ultimately it is the users' call whether or not to subscribe to a website's services and continue using it. | They said that ultimately it is the users' call whether or not to subscribe to a website's services and continue using it. |
"I don't think there should be a big concern. Users may share or keep as much data as they like," said Mark Natkin of Beijing-based consultancy Marbridge Consulting. | "I don't think there should be a big concern. Users may share or keep as much data as they like," said Mark Natkin of Beijing-based consultancy Marbridge Consulting. |
"If they subscribe to Yahoo and [they know] Yahoo is owned by a Chinese company, they are going to have to make the decision themselves," he added. | "If they subscribe to Yahoo and [they know] Yahoo is owned by a Chinese company, they are going to have to make the decision themselves," he added. |
Confirmed rumours | |
Alibaba and Yahoo's relationship goes back to 2005, when Yahoo bought a 43% stake in the Chinese firm for $1bn. | |
However, the relationship between the two has since deteriorated and Alibaba has been trying to buy back its stake, a move which Yahoo has so far resisted. | |
However, last week there were reports that Yahoo's board was considering reducing its stake in Alibaba. | |
At the same time, Yahoo's dwindling market share has resulted in reports linking various companies, including Alibaba, with a possible takeover bid. | |
Analysts said Alibaba's latest move will only add more fuel to the fire. | |
"It is one more confirmation of the rumours that Alibaba is keen to strike a deal with Yahoo, to reclaim its share that Yahoo owns," Tim Charlton of Charlton Media Group told the BBC. |