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

Transport of Delight

07/06/2017Transport of Delight

Ocean World Logistics (OWL), proud recipients of the Most ..

How to Choose the Best Tax Lien Service for Your Business

23/05/2025How to Choose the Best Tax Lien Service for Your Business

Suppose your organization faces back taxes, penalties or collections from the Internal Revenue Service (IRS). In that case, firms with the best tax lien services for businesses may be able to help you reduce the owed amount. The following tax resolution compan

Awesome Approyo

23/11/2020Awesome Approyo

Businesses in the modern world have had to experience unparalleled transformation unlike many other times that have gone before. Companies have had to transform their business processes, and Approyo has been hard at work helping them do just that. Approyo spec

Helsingborg-Helsingør route

19/03/2015Helsingborg-Helsingør route

First State Investments has reached financial close for its acquisition of the Helsingborg - Helsingør ferry route, raising about €230 million ($261 million) equivalent of debt from three commercial banks and a debt fund. A joint-venture between ferry opera

JAC’s Acquisition of NXP RF Power Business

20/08/2015JAC’s Acquisition of NXP RF Power Business

JAC's Acquisition of NXP RF Power Business

07/08/2023Issue 8 2023

In 2023, we are living in an increasingly automated world, with more and more businesses employing artificial intelligence (AI) in their daily operations in a variety of ways to enhance their productivity. AI is quickly becoming a precious resource for so many

Care By the Sea

09/03/2021Care By the Sea

So much more than simply a domiciliary care agency, Overington Care does not merely assist people to live an independent life in their own homes, it also has a strong focus on the mental wellbeing of its clients and its staff. Founder and owner, Nichola, tells

Proudly at the Forefront of International Business Law

08/10/2024Proudly at the Forefront of International Business Law

Among the specialised law firms in Europe, some stand out as eminent options for meeting clients' business law needs.

Strong Management More Important Than Ever in UK

29/10/2019Strong Management More Important Than Ever in UK

We are experiencing a resurgence in the popularity of tough bosses in the UK. The “Imperial CEO” started to become less fashionable in the eighties with the decline in deference. The nineties saw the reputation of strong business leadership tarnished with

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