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.

"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.

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