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Alibaba's cofounders are using company stock to borrow $2 billion

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Alibaba Chairman Jack Ma and Vice Chairman Joseph Tsai plan to take out a more than $2 billion loan using company stock as collateral, Bloomberg's Dinesh Nair, Spencer Soper, and Ruth David reported.

The capital raised from the loans could be used to fund Blue Pool Capital Ltd., a Hong Kong-based family office set up to manage the wealth of Alibaba executives, according to the report.

Alibaba's stock has been falling since its high of $120 in November, and dropped below its September 2014 IPO of $68 per share in August.

Shares traded at $66.47 as of 4:15 p.m. Eastern Standard Time Thursday.

Read the full Bloomberg article here.

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