According to, Beijing has intervened into Microsoft's acquisition of Yahoo by asking Chinese online e-commerce service provider Alibaba to provide detailed information on the acquisition and by keeping a close watch on the process of the acquisition as well as its possible influence.

Yahoo is a shareholder of Chinese Internet trading website company Alibaba. The Chinese government has contacted Alibaba in the hope of knowing about the influence of Microsoft's acquisition of Yahoo on Alibaba. It is very important for local management to maintain control of Alibaba, for China doesn't like to see a foreign company control its Internet content. However, as China's Anti-monopolization Law won't take effect until August 1, 2008, the Chinese government can't do much if Microsoft takes actions before that date.

Earlier this month, Microsoft announced plans to acquire the full stake of Yahoo for $31 per share in cash plus additional stock. However, Microsoft's offer has been refused by the board of directors of Yahoo, who believe that Microsoft has greatly under-valued Yahoo's market value.


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