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

Tech-led M&A: How to Attract a Buyer

05/06/2019Tech-led M&A: How to Attract a Buyer

The tech sector is one of the most targeted for M&A activity, attracting a wide variety of cross-industry buyers.

A Young and Hungry Law Firm

20/03/2018A Young and Hungry Law Firm

Samvãd Partners is a full-service multidisciplinary Indian law firm with offices in Bengaluru, Chennai, Hyderabad, Mumbai and New Delhi.

Flintfox Opens the Door to Europe With New Office

05/05/2015Flintfox Opens the Door to Europe With New Office

Flintfox International, a world leader in trade relationship and promotion management solutions, announce the opening of its new Hertfordshire office, just outside of London in the United Kingdom.

Innovative Leaders: My Controller

18/03/2015Innovative Leaders: My Controller

We spoke to Greg Parrish, Director of accountancy and tax practice, My Controller, to find out more about his company, the UK business environment and his secrets for success.

Skadden Advises NFP Acquisition of BWD

13/08/2015Skadden Advises NFP Acquisition of BWD

Skadden Advises NFP Acquisition of BWD

How the Business Community Uses Bitcoin Despite Its Volatility

01/12/2020How the Business Community Uses Bitcoin Despite Its Volatility

The eventual goal of Bitcoin is to supplant fiat currency but volatility still remains the biggest barrier.

Technology Transactions

29/06/2016Technology Transactions

As with many sectors, the value of technology transactions was impressive during the second half of 2015. In all USD 319,086 million-worth of deal making was recorded over the six months.

An Asset to the Industry

13/10/2017An Asset to the Industry

An Asset to the Industry

3 Proven Strategies for Mastering the Art of Closing High-Stake M&A Deals

31/05/20233 Proven Strategies for Mastering the Art of Closing High-Stake M&A Deals

Mergers and acquisitions have always been risky undertakings that can end without profit. The most complex transactions can rightfully involve M&A that can drag on for years without any visible results.

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