Yahoo is making amends for years of blundering with one smart move: an early investment in China's Alibaba Group that has turned into a multibillion-dollar boon.
The latest windfall will be delivered with Alibaba's record-setting IPO completed late Thursday, which is expected raise up to $25 billion for the e-commerce company and its early backers. The company's shares will begin trading for the first time on Friday on the New York Stock Exchange.
Yahoo is in line to make anywhere from $8.3 billion to $9.5 billion from the initial public offering, depending on whether investment bankers exercise their right to buy additional stock in the deal. The payoff supplements the $7.6 billion jackpot that Yahoo collected two years ago after selling another chunk of its Alibaba holdings and reworked a licensing agreement with the Chinese company.