Case 5 Essential Facts:1. On November 11, 2011, Bloomberg reported that China’s leading e-commerce company, Alibaba Group (Alibaba), in association with Softbank Corporation, The Blackstone Group, and Bain Capital, was considering making a bid for Yahoo! Inc.2. Alibaba had several Internet businesses focused on various e-commerce business models such as Business-to-Business (B2B), Consumer-to-Consumer (C2C), and Business-to-Consumer (B2C).3. In 2010, the company had also launched a transaction-based wholesale platform, AliExpress, for Chinese merchants to sell goods to foreign buyers.4. As of 2011, it had 69 million registered users spread across more than 240 countries.5. Alibaba had been the clear market leader in the Chinese e-commerce market with a market share of 63.5 percent for the FY 2010.6. The Chinese search engine market was dominated by players such as Baidu.com, Inc.10 (Baidu) and Google Inc.11 (Google) with market shares of 77.7 percent and 18.3 percent, respectively, in Q3 of 2011.7. In August 2010, Alibaba had acquired Sogou, a search engine of Chinese portal Sohu.com, in a bid to increase its dominance in the Chinese web search market.8. It also had ambitious plans of investing US$ 157 million in its shopping search engine eTao in order to gain a strong foothold in the online shopping market in China.9. Jack Ma, founder of Alibaba, was born in Hangzhou, a city in China’s Zhejiang province, in 1964. At the age of twelve, Ma developed a fascination for the English language.10. When Ma went to Australia, he found the world is totally different as he thought, he realized that he have to use his own mind to judge, to think.11. Ma launched China pages, China’s first commercial website, in 1995.12. In 1998, Ma moved to Beijing to work for the Chinese Ministry of Foreign Trade and Economic Cooperation as the Head of the Information Department ofChina International Electronic Commerce Center. He designed a website for MOFTEC, this became the first government website in China.Alibaba in its initial years13. In 1998, Ma left MOFTEC and returned to Hangzhou to fulfill his dream of establishing his own e-commerce company.