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Yahoo, Japan's Alibaba and China's Softbank reach agreement on Alipay
NEW YORK (AP) ' Yahoo, Japan's Softbank and the Chinese Internet company Alibaba Group have agreed on a compensation plan involving the Web payment service Alipay.
Yahoo holds a 43 percent stake in Alibaba. In May, Yahoo shocked investors with news that Alibaba had spun off Alipay in March without giving the Internet company anything in return.
Under the new agreement, Yahoo Inc., Softbank Corp. and Alibaba said that Alibaba will continue to participate in Alipay's future financial performance. Alibaba will get at least $2 billion and up to $6 billion upon a possible IPO or sale of Alipay.
Alipay says it is China's biggest third-party online payment platform.
Yahoo shares are up almost 7 percent in premarket trading.