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

European Headquarters On The Way Out of London?

29/05/2018European Headquarters On The Way Out of London?

Along with Brexit causing a mountain of problems for every business in the UK, the much larger and market defining corporations are not exempt from the potential changes being made, this has seen many industry giants head out the Brexit door to mainland Europe

‘Advice Gap’ Revealed as More Than Half of British Adults Fail to Seek Financial Help

26/03/2015‘Advice Gap’ Revealed as More Than Half of British Adults Fail to Seek Financial Help

A majority of British adults are falling through an 'advice gap' by not making use of financial advisers, according to new research from unbiased.co.uk and MetLife.

Most Innovative Law Firm of 2016, Portugal

04/04/2016Most Innovative Law Firm of 2016, Portugal

The Most Innovative Law Firm of 2016, Portugal goes to Esquivel Advogados in Portugal.

How Are Interest Rates Determined?

07/01/2019How Are Interest Rates Determined?

Interest is effectively the price of money: whether it is the price a bank or lender is offering in return for a loan or mortgage, or the price a saver can expect to receive for depositing their money, it is always calculated by the individual institution invo

A Guide to the UK Conveyancing Process for International Business Leaders Acquiring Property

31/07/2026A Guide to the UK Conveyancing Process for International Business Leaders Acquiring Property

The UK conveyancing process for international business leaders acquiring commercial or high-value residential property requires meticulous attention to cross-border regulations, tax liabilities, and corporate structuring. The process typically takes 8 to 12 we

Wealth Planning Solutions That Matter

04/03/2024Wealth Planning Solutions That Matter

Firmly established within the heart of the financial services industry, Lombard International Group (Lombard International) sits at the intersection of wealth management, private banking, and insurance. With more than 30 years’ experience, Lombard Internatio

Due Diligence Solutions : Exceeding Clients Expectations

13/08/2019Due Diligence Solutions : Exceeding Clients Expectations

Due Diligence Solutions is an independent business supporting IFA/Firms to complete their platform and DFM due diligence review.

Cash Flow Management: Navigating Peaks and Valleys in Business Finances

07/12/2023Cash Flow Management: Navigating Peaks and Valleys in Business Finances

Cash Flow Management: Navigating Peaks and Valleys in Business Finances In the serpentine journey of business, cash flow stands as the lifeblood – pulsing through the veins of daily operations, empowering growth, and sometimes, signaling financial distre

The Art of Service

11/04/2016The Art of Service

Versatility, flexibility and a broad range of products and services ensure cost effective purchase and quality services in a challenging business environment.

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