Alibaba is investing over $1 billion in TangoMe, an upcoming social media application where Jerry Yang is an investor.
TangoMe is a social media service that allows users to connect with friends and family through sending free text messages and phone calls
TangoMe investor Jerry Yang was in discussions with Alibaba Vice Chairman Joe Tsai in Mountain View, California late 2013, according to Bloomberg.
Tsai and Yang sealed the deal with Alibaba shelling out $215 million in TangoMe as part of a total investment valued at more than $1 billion.
TangoMe co-founder was indeed thankful for Yang for the brave move, "We have been extremely fortunate to have Jerry Yang as an investor and as an adviser," he said in an email, according to Bloomberg.
The 45-year old co-founder of Yahoo! Inc. is reported to return to the online retail business as board member after resigning back in 2012. He will be together with Director Jack Ma, Masayoshi Son and six new members.
He will reportedly bring innovative ideas to the company with his expertise, according to a statement by Jim Wilkinson, Alibaba senior vice president.
However, Yahoo and Alibaba's relationship was previously under strain when the two companies could not compromise on Alibaba buying back its shares from Yahoo in 2010. Furthermore, the companies had a dispute in 2011 regarding the management of Alibaba's 'Alipay,'a payment service that allows buyers to pay for buying goods from an international merchant/supplier online.
Despite the issue, Yahoo is reported to gain from the Alibaba-TangoMe partnership. When Alibaba goes public, the site's value will rise, and Yahoo will sell as much as a quarter of its shares or 140 million shares of Alibaba, earning $8 billion or more.
Marissa Mayer, Yahoo CEO was thankful for Yang for the investment and said that the earnings from the acquisitions will help Yahoo make a complete turnaround.
