Please enable JavaScript in your web browser settings, under the site permissions section to unlock full site functionality. Click here for help.

Article Image - Yahoo’s Tax Free Plans for Alibaba Stake

Posted 21st May 2015

Yahoo’s Tax Free Plans for Alibaba Stake

Shares in the new company would be distributed among shareholders and the transaction could save as much as $16 billion

Scroll to keep reading

Yahoo’s Tax Free Plans for Alibaba Stake

Yahoo’s Tax Free Plans for Alibaba Stake

Shares in the new company would be distributed among shareholders and the transaction could save as much as $16 billion

Investors of Yahoo may have casue to worry about the plans the company has to withdrawm it’s stake in Alibaba Group Holding Ltd. in the realisation of new scrutiny by the Internal Revenue Service in regards to tax-free spinoffs, tax lawyers have said.

January saw Yahoo announce a plan to remove it’s share in Alibaba, a stake valued at the time at $40 billion. Typically a U.S. company would see about 35% federal tax bill when it sells stock in another company for cash.

The deal is being structured as a complex spinoff, putting Yahoo’s Alibaba stake into a new company that will own an online service for setting up and running small enterprises. The shares in the new company would be distriubuted amongst it’s existing sharehodlers, which the company hopes will ensure tax-free treatment for the deal. Overall the transaction could save up to $16 billion.

Categories: Finance

You Might Also Like

6 Strategies to Retain Employees After a Merger or Acquisition Process

26/07/20236 Strategies to Retain Employees After a Merger or Acquisition Process

Mergers and acquisitions (M&A) are significant business transactions involving the consolidation of companies or assets.

American Express Survey Reveals UK Businesses Are Maintaining a Prudent Approach to Business Growth

02/03/2015American Express Survey Reveals UK Businesses Are Maintaining a Prudent Approach to Business Growth

Caution typified by the recession era still prevails, says American Express

Protecting Your Assets and Your Future: When to Seek Specialized Legal Counsel

27/05/2024Protecting Your Assets and Your Future: When to Seek Specialized Legal Counsel

New York City is synonymous with success. Wall Street titans, real estate moguls, and entrepreneurs who’ve built their empires all call it home. But behind the private jets and Fifth Avenue penthouses lies a reality those of more modest means rarely have

Herkules Capital Acquisition of Shares in Linas Matkasse

04/08/2015Herkules Capital Acquisition of Shares in Linas Matkasse

Herkules Capital Acquisition of Shares in Linas Matkasse

Bringing Breakthrough Advance to the Modelling and Simulation Community

13/08/2019Bringing Breakthrough Advance to the Modelling and Simulation Community

Lixoft develops modelling and simulation software for advanced model-based drug development. Recently, we caught up with the firm’s CEO, Jonathan Chauvin who provided us with a detailed behind the scenes look into the innerworkings of the award-winning compa

How Investors Can Travel to Regional Business Hubs Without Losing Valuable Time

27/07/2026How Investors Can Travel to Regional Business Hubs Without Losing Valuable Time

The most promising investment opportunities are not always found in the world’s largest financial centres. Many successful businesses operate from manufacturing corridors, logistics hubs, energy regions and smaller cities that sit well outside traditiona

A Case in Point

31/08/2016A Case in Point

Beyerlein Rechtsanwälte is a highly specialised law firm focusing on intellectual property on the one hand and life sciences (drugs, medical devices, food and food supplements, cosmetic products and so on) on the other hand.

The Role of Construction Accident Statistics in Business Planning and Risk Management

16/10/2024The Role of Construction Accident Statistics in Business Planning and Risk Management

Construction accident statistics are the central component of risk management in the construction industry. By analyzing and understanding accident data, companies can identify potential hazards, implement safety measures, create a safer environment for their

Strategy, Management & Legal

08/01/2018Strategy, Management & Legal

Grand Hill Consulting is one of the most successful restructuring boutiques in Brazil.

View More Articles

Our Trusted Brands

Acquisition International is a flagship brand of AI Global Media. AI Global Media is a B2B enterprise and are committed to creating engaging content allowing businesses to market their services to a larger global audience. We have a number of unique brands, each of which serves a specific industry or region. Each brand covers the latest news in its sector and publishes a digital magazine and newsletter which is read by a global audience.

MORE BRANDS