Yahoo says to keep a larger stake in Alibaba after IPO

SAN FRANCISCO Tue Oct 15, 2013 4:17pm EDT

SAN FRANCISCO Oct 15 (Reuters) - Yahoo Inc has agreed to reduce the maximum number of shares in Alibaba Group Holding Ltd that it's required to sell when the Chinese e-commerce giant goes public.

Under the terms of an amended agreement that Yahoo announced on Tuesday, the U.S. Internet company will sell up to 208 million of the 523.6 million shares it owns in Alibaba, either directly back to Alibaba or through the IPO. That's down from a previously agreed maximum of 261.5 million.

After the IPO, which sources say could happen in 2014, Yahoo would then have the right to sell its remaining Alibaba shares at its discretion.