- Share this article on Facebook
- Share this article on Twitter
- Share this article on Email
- Show additional share options
- Share this article on Print
- Share this article on Comment
- Share this article on Whatsapp
- Share this article on Linkedin
- Share this article on Reddit
- Share this article on Pinit
- Share this article on Tumblr
Chinese e-commerce giant, Alibaba, has stepped away from negotiations with the Hong Kong Stock Exchange for its much-anticipated IPO. The company is instead preparing for a listing in New York, according to unnamed sources cited by the Wall Street Journal.
The Alibaba IPO is expected to value the company at approximately $70 billion, making it the largest tech industry debut since Facebook’s troubled listing last year.
PHOTOS: The New A-List: 23 Salaries From Angelina Jolie to Robert Downey Jr. Revealed
The company’s core business is e-commerce — an area it dominates in China — with its online marketplaces, Taobao and Tmall, roughly akin to the Chinese version of e-bay.
Over the past year the company has expanded its scope, taking an 18 percent stake in leading Chinese social media firm, Sina Weibo, and moving towards buying streaming video service PPTV with partner Hunan TV. The company paid $586 million for its slice of Sina Weibo and has the right to raise its stake to 30 percent at a later date. The PPTV deal still remains unconfirmed, but the most recent reports had Alibaba closing in on paying $400 million for the site.
Last May, Alibaba bought back roughly half of a 40 percent stake Yahoo was holding in the company. Yahoo’s remaining stake in Alibaba is viewed by analysts as one of its most valuable assets.
STORY: Chinese Internet TV Consolidation Continues as Alibaba Closes on PPTV Acquisition
According to the Journal, Alibaba had been negotiating with the Hong Kong Stock exchange and local regulators to allow the company’s billionaire founder, Jack Ma, and senior management to maintain control over the makeup of its board. The Hong Kong exchange doesn’t allow a so-called “dual-class structure,” however, and the company pivoted towards New York, where that model is the one favored by U.S.-listed tech companies, such as Google and Facebook. In the dual-class system, a company issues two categories of stock with founders and senior management getting shares that give them greater voting power in shareholder votes.
According to the Journal’s sources, Alibaba has already contracted a U.S. law firm to work on the IPO in New York and will soon hire investment banks.
Sign up for THR news straight to your inbox every day
More from The Hollywood Reporter
Mindy Kaling, Bruce Springsteen, Julia Louis-Dreyfus Among Honorees of White House’s National Medals of Arts
Ed Sheeran Goes on Intimate Journey in New Disney+ Docuseries ‘Ed Sheeran: The Sum of It All’
Mark Twain Prize
Adam Sandler’s Starry Friends Toast His Comic Legacy as He Receives Mark Twain Humor Prize
Jason Ritter Jokes His First Hollywood Job Was a “Full-on Nepotism Hire” Thanks to His Dad John Ritter