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

Four Communications Moves into Retail Sector with Acquisition of Rain Communications

26/07/2016Four Communications Moves into Retail Sector with Acquisition of Rain Communications

: Independent integrated agency Four Communications Group (Four) today announced the acquisition of Rain Communications (Rain) in a move that sees the business extend into the retail, destination and luxury sectors. Rain, which was formed over a decade ago, bi

Soft Launch Strategy for Your App: Why and How to Do It?

08/06/2022Soft Launch Strategy for Your App: Why and How to Do It?

Especially for first-time app developers, a soft launch can be immensely valuable. It enables you to trial your app without going all-out straight away, thereby allowing you to test the waters first.

Offshore Wind Attracting a Variety of Investor Groups

12/10/2015Offshore Wind Attracting a Variety of Investor Groups

The wide range of investment entry points in offshore wind has attracted a diversified group of investors that span from strategic industrial players to passive financial investors. We spoke to Christine Brockwell, Managing Director and Head of Corporate Devel

Airport Ground Handling Merger May Give Rise to Competition Concerns

15/12/2016Airport Ground Handling Merger May Give Rise to Competition Concerns

Menzies’ acquisition of ASIG may give rise to competition concerns over ground handling services at Aberdeen Airport.

Executive Education: The Secret to Staying Ahead in Leadership

04/09/2025Executive Education: The Secret to Staying Ahead in Leadership

Becoming a top leader in the corporate world does not guarantee continued success. There are always new leaders coming up and competition never gets easier. So, the key to maintaining your success and getting better is executive education. If you are thinking

6 Things to Do Before Implementing An ERP System

23/11/20216 Things to Do Before Implementing An ERP System

Usually, when an individual or organization plans to implement new software or system into their infrastructure, preparation is necessary, and that’s especially true when it comes to ERP systems.

Growth for Drive Medical Limited

17/06/2015Growth for Drive Medical Limited

Drive Medical Limited, a leading manufacturer and distributor of durable mobility equipment in Europe, has experienced significant growth following the acquisition of two companies.

Redefining Legal Security: The Power of the Edge

30/10/2024Redefining Legal Security: The Power of the Edge

The 2023 National Cyber Security Centre (NCSC) report highlights the UK legal sector's vulnerability.

Stellex Capital, in Partnership With Communify, has Acquired Fincentric From S&P Global

16/08/2024Stellex Capital, in Partnership With Communify, has Acquired Fincentric From S&P Global

Communify, a Just Build It (JBI) company led by the former founders of InvestCloud, in partnership with Stellex Capital Management, will be combined with Fincentric (formerly known as Markit On Demand), a provider of digital experiences, curating financial dat

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