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

The 2017 Global Mobility Immigration & International HR Awards Press Release

21/06/2017The 2017 Global Mobility Immigration & International HR Awards Press Release

The 2017 Global Mobility Immigration & International HR Awards Press Release

9 Fun Ways to Advertise Your Business

29/06/20239 Fun Ways to Advertise Your Business

In the ever-evolving world of business, capturing the attention of potential customers is crucial for success. To stand out against the competition, it’s important to look beyond traditional advertising methods and explore fun, inventive ways to promote your

Fossil Group, Inc. to Acquire Wearable Tech Innovator Misfit .

13/11/2015Fossil Group, Inc. to Acquire Wearable Tech Innovator Misfit .

Acquisition of Leading Technology Platform and World-Class Engineering Team Will Fuel Rapid Growth in Wearable Technology

Why Data Accuracy Is Crucial in Financial Analysis

03/06/2024Why Data Accuracy Is Crucial in Financial Analysis

The financial analytics market is already worth more than $8 billion, and is used to inform decisions with values spiraling into the trillions. This is impressive in isolation, but perhaps not enough to prove that accuracy is the driving force behind the adopt

Volatility and Complexity in Tax Rules

31/08/2016Volatility and Complexity in Tax Rules

AVELLUM is best known for its expertise in transactional tax and international tax planning. The firm’s unmatched experience allows us to provide clients with the best quality services in these fields.

The UK Cities with the Most Female Leaders

16/10/2023The UK Cities with the Most Female Leaders

A recent study, carried out by Instant Offices provides an in-depth look into the landscape of female leadership throughout the UK. The focus of this analysis spans various dimensions such as location, age, and industry sectors.

The Most Innovative UK Accountancy Firm 2016 Acquisition

04/05/2016The Most Innovative UK Accountancy Firm 2016 Acquisition

Formed as a start-up firm of chartered accountants, Aspen Waite has grown to become a recognised firm of business advisors.

5 Ways AI Is Outperforming Experts

07/03/20225 Ways AI Is Outperforming Experts

With DeepMind claiming that its AI system – AlphaCode – can “write computer code at a competitive level,” a milestone may have been reached. The ability of a machine to match the coding skills typical of human intelligence, if true, represents a moment

Innovative Business Concepts to Save Money

30/06/2021Innovative Business Concepts to Save Money

The ultimate goal of any business is to turn a profit. Here are five innovative business concepts you should explore to save money.

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