Alibaba operates in the world's largest Internet market—China. With 24,000 employees, more people work for the company than Yahoo and Facebook combined.
Yahoo owns 22.6 percent of Alibaba, according to the IPO filing. Its shares were flat in after-hours trading following the news. At a $150 billion valuation, Yahoo's stake in Alibaba would be worth nearly $34 billion, compared to Yahoo's total market capitalization of $36.7 billion.
Alibaba.com is part of the Alibaba Group, founded in 1999 by Jack Ma, a former English teacher from Hangzhou, China. Alibaba.com first became profitable in 2002. Alibaba Group's other platforms include Taobao, Tmall and Alipay. The latter is an online and mobile payment platform.
A big annual event for Alibaba occurs on Nov. 11, when the company conducts a huge online shopping sale that coincides with "Single's Day" in China. That's when young Chinese lament or celebrate being single.
The most recent Single's Day generated some $5.7 billion in sales, even though only a fraction of Chinese shoppers have broadband access, said Anthony Scaramucci, founder of SkyBridge Capital, on a recent "Closing Bell." "It just shows you the power of this brand. I think this thing trades through the $200 billion market cap number, that's our opinion."
In addition to Yahoo their other key listed shareholder is Japan's SoftBank. CEO Jack Ma also holds an 8.9 percent stake in the firm. If Alibaba debuted at a $200 billion valuation, his holdings would place him among the world's 50 richest people, based on Forbes' latest list of billionaires.
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