shares were slipping 3.5% Tuesday on mixed news related to the company's dealings in China.
The Internet giant, buoyed by a
solid third-quarter earnings and
anticipation for Tuesday's IPO for investment Alibaba.com in Hong Kong, enjoyed a run-up of more than 34% since hitting a 52-week low of $22.27 on Aug. 29. Yahoo! owns a 39% stake in Alibaba Group, Alibaba.com's parent company.
But even though Alibaba.com's debut Tuesday saw shares of the Chinese e-commerce play triple, Yahoo! shares were sliding $1.10 to $30.26 as executives were grilled by members of U.S. Congress over the company's role in the jailing of a Chinese journalist.
According to the
, Shi Tao was sentenced to 10 years in a Chinese prison after Yahoo! complied with a request from the Chinese government to turn over information about his online activities. The communist government deemed his pro-democracy work "subversive," according to
House Foreign Affairs Committee Chairman Tom Lantos (D, Calif.) lambasted Yahoo! founder and CEO Jerry Yang and General Counsel Michael Callahan at the hearing in Washington, D.C.
"Yahoo! claims that this is just one big misunderstanding. Let me be clear -- this was no misunderstanding," Lantos said, according to
. "This was inexcusably negligent behavior at best, and deliberately deceptive behavior at worst."
Yang said in a written statement that the company has complied with the committee's investigation. The committee is looking at comments Callahan made at a hearing last year that the company was not aware of the nature of the Chinese government's probe when it supplied the information, according to