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

Protecting Their Client’s Rights

28/06/2019Protecting Their Client’s Rights

J. Pereira da Cruz, S.A. is a consultancy company specializing in Intellectual Property. Recently, we caught up with Maria Cruz Garcia who provided us with a detailed insight into the services the company provides

4 Key Elements of Effective & Engaging Business Blogs

26/05/20234 Key Elements of Effective & Engaging Business Blogs

Business blogs are ten a penny, and so it pays to make sure yours is effective not only in its content, but its presentation, so that readers are engaged and your audience grows.

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

The Role Of Custom Moulding In Global Acquisition Strategies

26/10/2023The Role Of Custom Moulding In Global Acquisition Strategies

In today's fast-paced industrial landscape, acquisition strategies have become the lifeblood for many companies aiming to expand their global footprint.

2016 Intellectual Property Practitioner of the Year – Hong Kong

31/07/20162016 Intellectual Property Practitioner of the Year – Hong Kong

Established in 1970, Fairbairn Catley Low & Kong is one of Hong Kong’s major law firms advising on all aspects of law.

How to Effectively Scale Your Business With Guest Blogging

04/02/2022How to Effectively Scale Your Business With Guest Blogging

Capturing your audience’s attention in this volatile and competitive market isn’t easy. People are constantly bombarded with online content, and to stand out, your content marketing strategy needs to be on point. A blog is a great way to get customers to p

Specialized Shipping as Strategic Advantage: The Overlooked Element in Market Expansion Plans

01/12/2025Specialized Shipping as Strategic Advantage: The Overlooked Element in Market Expansion Plans

Market expansion entails a comprehensive market analysis, product-market fit, robust strategies and financial forecasting. However, many fail to see logistics as a strategic lever to be maximised. Investing in specialised shipping services is a powerful compet

An Influential Figure in M&A

08/02/2019An Influential Figure in M&A

Lisa Wright has worked in the information industry for 25 years and is an influential figure in M&A through her role at Bureau van Dijk, a Moody’s Analytics company. Recently, we caught up with Lisa who revealed more about the firm, especially following her

Successful Multi Disciplinary Law Firm

23/10/2017Successful Multi Disciplinary Law Firm

Successful MultiDisciplinary Law Firm

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