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 Rise of ESG in Private Equity: How Sustainability Is Shaping Acquisitions

20/08/2025The Rise of ESG in Private Equity: How Sustainability Is Shaping Acquisitions

Traditionally, firms viewed ESG mainly from a risk management perspective. Now, it is treated as a strategic lever for value creation.

Frost & Sullivan Identify Key Trends in the Energy & Environment Markets

02/03/2015Frost & Sullivan Identify Key Trends in the Energy & Environment Markets

Frost & Sullivan identify the top trends that will impact these two sectors in 2015.

The LGV Training Company Highlights The Flourishing HGV Sector Amidst Growth Prospects

03/01/2024The LGV Training Company Highlights The Flourishing HGV Sector Amidst Growth Prospects

The LGV Training Company Highlights The Flourishing HGV Sector Amidst Growth Prospects Based on previous statistics, The HGV industry has experienced a surge in growth and presents a multitude of opportunities for prospective drivers. Past statistics from a co

Closure of Polaris Private Equity IV at €300m

12/03/2015Closure of Polaris Private Equity IV at €300m

Polaris Private Equity (“Polaris”), the leading Danish/Swedish lower mid-market private equity investor, is pleased to announce that it has successfully completed a first closing of its fourth private equity fund – Polaris Private Equity IV – at DKK 2.

Moving Class Outside: Adjusting Academics

13/08/2021Moving Class Outside: Adjusting Academics

When you think of the typical classroom, you’re probably picturing brick walls, rows of desks, a chalkboard and a few decorations that match the subject being taught. Over this past year, though, the traditional classroom has been flipped. The pandemic sent

How Hiring the Right Lawyer Can Make a Difference

23/10/2023How Hiring the Right Lawyer Can Make a Difference

Hiring a lawyer can be daunting, especially in complex legal matters. The decision holds profound implications for the outcome of a case, making the selection of the right lawyer paramount. This article delves into a lawyer’s far-reaching impact on a leg

The World’s Risk Capital

23/03/2017The World’s Risk Capital

Established in 1971, the Bermuda Stock Exchange (BSX) is now the leading fully electronic offshore securities market. The firm recently won the Most Outstanding Offshore Stock Exchange 2016 as part of the 2016 Global Excellence Awards.

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

Scaling Your Brokerage Business in 2024: Adopting Trends from LATAM’s Fintech Revolution

08/04/2024Scaling Your Brokerage Business in 2024: Adopting Trends from LATAM’s Fintech Revolution

Source: Pexels.com If you’re looking to level up your connections and gain fresh perspectives, iFX EXPO events are the place to be! These educational conferences bring thousands of finance whizzes and trading titans together in major metro areas each yea

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