Alibaba Reaches Settlement with Yahoo, Softbank

(Beijing) -- China's largest e-commerce operator Alibaba Group on July 29 signed an agreement with Yahoo and Softbank over the spin-off of Alipay, the online payment service. In May, the transfer of Alipay's ownership to a domestic company controlled by Alibaba's founder and CEO Jack Ma was made public in an exchange filing by Yahoo.

According to the agreement, Alibaba will receive a one-off cash payment at 37.5 percent of Alipay's market value if it goes public, based on its IPO price.