Editor's note: The headline of this story was changed to reflect the degree to which any Yahoo!-Alibaba deal was threatened by China-U.S. politics. Alibaba CEO Jack Ma did not say that a potential deal for Yahoo! could be "halted" but rather that it had faced "political issues."
NEW YORK (
TheStreet) -- Despite
(YHOO - Get Report) best attempt to drive up interest in a deal for itself, a deal in which
Alibaba Group buys all of Yahoo! will never happen.
news broke Wednesday of another bid for the Internet company", Yahoo! shares ticked higher after hours. A consortium of companies, including Alibaba, private-equity firms
(BX - Get Report) and
Bain Capital, and Japanese firm
Softbank have talked about doing a joint deal for Yahoo! in the range of $20 a share. The supposed deal would value Yahoo! at $25 billion.
| More suitors for Yahoo! are appearing by the day.
The Yahoo! story is heating up, as another private-equity firm,
, reportedly floated an offer to
buy a significant minority stake
in Yahoo! at a reported $16.60 a share.
As the offer supposedly stands, Bain and Blackstone would take over the U.S. operations of Yahoo! with Softbank taking over
. Alibaba would buy back the 40% stake Yahoo! currently owns.
reported that Alibaba may also work with other private-equity firms, or even try to buy back a large portion of the Yahoo! stake, and not all of it.
Alibaba seems most interested in repurchasing the 40% stake Yahoo! owns in the Chinese e-commerce company, but CEO Jack Ma has talked previously about taking over Yahoo! as a whole. However, that could be derailed by Sino-U.S. political relations.
that the deal has run into some
In 2005, China's
tried to buy Californian oil company
, but the deal was nixed because of political pressure. More recently,
tried to buy
, and that deal was met with political opposition as well, despite CheckPoint providing services to the U.S. government.
With China's population of 1.2 billion, Internet companies there still have plenty of room for expansion at home, but the thought of a potential Alibaba bid for Yahoo! as a whole means that CEO Ma and his team are clearly looking toward expanding outside of China, and
capturing global market share
, which owns AliPay,
is working to become one of the most dominant Internet companies in the world, and it needs to expand globally for that to happen.