Yahoo to:
- Purchase 201mm ordinary shares of Alibaba for $250mm cash
- Purchase Softbank share of Taobao for $360mm cash and transfer to Alibaba (Alibaba to own 100% of Taobao)
- Contribute Yahoo China business and ops to Alibaba
- Purchase additional shares of Alibaba in secondary offering for $390mm cash. Will own 40% of Alibaba (fully-diluted)
Click here for SEC doc.
- New site to be launched (Tom Eachnet). Ebay Eachnet customers will be offered option to transition to new site.
- JV formed with ownership 51% Tom Online, 49% Ebay, incorporated in British Virgin Islands with limited liability.
- 6 BOD seats, 3 from Ebay and 3 from Tom.
Tom to provide:
- $20mm shareholders' loan to JV
- Leadership and management services
- Marketing to Tom user base (drive traffic to JV site)
Ebay to contribute/license
- trademark and domain names to venture
- $40mm initial funding to JV
- transfer all equity in EENIS* to member of JV
If initial funds consumed, additional funding to be made in form of shareholders' loans from Ebay and Tom (equal proportions) up to $10mm
New JV platform to be launched called Tom Eachnet
On the "event of default" certain put and call options based on third-party equity valuatio of JV would be invoked
*EENIS is a wholly owned foreign enterprise incorporated in the PRC owned by Ebay. 2005 loss was RMB68mm (~$8.5mm), and net assets were RMB144mm (~$18mm).
Click here for SEC doc.
No comments:
Post a Comment