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

How to Create a Product to Sell Online in 5 Simple Steps

01/09/2023How to Create a Product to Sell Online in 5 Simple Steps

Considering entering the exciting world of ecommerce with an amazing new product? Whether you’re a budding entrepreneur or an established business looking to expand your online presence, this article will walk you through the essential steps to transform

Considerations in Preparing for the Sale of a Privately Held Business

19/11/2015Considerations in Preparing for the Sale of a Privately Held Business

Carl D. Roston, M&A and Private Equity Practice Co-Chair, Akerman LLP talks us through the best means to structure a business for sale.

Innovative Crowdsourced Penetration Testing

22/07/2019Innovative Crowdsourced Penetration Testing

Penetration testing is supposed to help organizations find and fix vulnerabilities in their systems before criminal hackers can exploit them.

The people-focused business.

28/07/2022The people-focused business.

Personio has focused on one of the most important aspects of business life – people.

A10 Networks Files for IPO

15/04/2015A10 Networks Files for IPO

We take a look at A10 Networks’ IPO in March of last year. A10 Networks has pioneered a new generation of application networking technologies.

Why You Should Choose Professional iPhone Repair Services

09/09/2024Why You Should Choose Professional iPhone Repair Services

Why You Should Choose Professional iPhone Repair Services What do you do when your iPhone starts malfunctioning? How can you ensure it gets the best care without risking further damage? Choosing professional iPhone repair services is the most brilliant move fo

Lear Capital on Gold’s Role as a Hedging Mechanism Amid Stock Market Declines

09/05/2025Lear Capital on Gold’s Role as a Hedging Mechanism Amid Stock Market Declines

Gold continues to demonstrate its enduring value as a hedge in 2025, with prices reaching historic highs amid increasing market volatility and economic uncertainty. The precious metal’s recent performance has reaffirmed its reputation as an important div

Cegedim Acquisition of Activus

03/08/2015Cegedim Acquisition of Activus

Cegedim Acquisition of Activus

NLRB Micro-Union Decision Causes Untold Harm to Retail

30/04/2015NLRB Micro-Union Decision Causes Untold Harm to Retail

The National Labor Relations Board’s decision to recognize a micro-union of workers in just a single department at a Macy’s store in Massachusetts rather than the entire store violates longstanding precedents on union organizing, said the NRF.

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