Rumor: China authorities eye Microsoft-Yahoo deal

Reports are surfacing that Chinese authorities are scrutinizing Microsoft's hostile takeover of Yahoo over concerns about foreign control of the major Chinese marketplace Alibaba.

Graham Webster

Formerly a journalist and consultant in Beijing, Graham Webster is a graduate student studying East Asia at Harvard University. At Sinobyte, he follows the effects of technology on Chinese politics, the environment, and global affairs. He is a member of the CNET Blog Network, and is not an employee of CNET. Disclosure.

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Graham Webster

Feb. 19, 2008 12:10 a.m. PT

"According to Zaobao.com, 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," writes ChinaTechNews.com.

Chinese authorities have an interest in the deal partly because Yahoo is a major shareholder of Alibaba, a major online marketplace where manufacturers find customers.