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

Manufacturing Sector ‘Enduring a Real Struggle’ Says EY ITEM Club

10/09/2015Manufacturing Sector ‘Enduring a Real Struggle’ Says EY ITEM Club

Research from multinational professional services firm EY suggests a slowdown in gorwoth in the manufacturing sector for the 3rd quarter of 2015.

The Pros and Cons of No Credit Check Loans: Is It the Right Choice for You?

06/11/2023The Pros and Cons of No Credit Check Loans: Is It the Right Choice for You?

If you’re facing a financial crunch or unexpected expenses in Australia, the idea of a no credit check loan might seem like a lifeline. These loans can be enticing due to their quick approval process, but they come with their own set of advantages and di

To Infiniti and Beyond?

27/08/2015To Infiniti and Beyond?

Infiniti has announced that an engineering student from the University of Illinois is one of five global winners of the 2015 Infiniti Performance Engineering Academy (IPEA). For one year, Infiniti will provide 22-year-old Alex Allmandinger with the opportunity

What to Consider When Setting Up a Payroll System for Your Small Business

02/12/2021What to Consider When Setting Up a Payroll System for Your Small Business

It’s a good idea for any business to have an accurate and up-to-date payroll system. Some people might not think about the need to have a payroll system until they’re ready to hire employees. Thus, having one in place before you start hiring is muc

Where It Counts

01/11/2019Where It Counts

Based in Broken Arrow, Oklahoma, it’s surprising that IRON Tax is one of the few firms that specialises in the new field of cannabis accounting. We caught up with CEO Roger McCloud to find out more.

How Can Digital Business Cards Affect The Business World?

05/01/2023How Can Digital Business Cards Affect The Business World?

In the digital age, traditional business cards have taken a back seat to newer and more efficient methods of exchanging contact information. As businesses begin to explore digital options for their business cards, it's clear that these technological upgrades c

What to Look for When You Are Switching to a New Credit Card

05/12/2022What to Look for When You Are Switching to a New Credit Card

According to a May 2021 Federal Reserve report, as many as 83% of Americans have at least one credit card, leaving approximately 17% that currently don’t have a line of credit. But it’s becoming more complicated to live without a credit card, given how oft

Yantai Xinchao to Acquire Texas Oil Fields for $1.3 Billion

27/10/2015Yantai Xinchao to Acquire Texas Oil Fields for $1.3 Billion

With China's increased interest and investment in the energy, Yantai Xinchao plan to purchase giant oil fields in Texas.

BiP Solutions Acquires Pro Mark Media

30/04/2015BiP Solutions Acquires Pro Mark Media

BiP Solutions (BiP), the leading provider of business intelligence solutions for the public/private sector marketplace, has acquired Pro-Mark Media (PMM) - one of the UK's leading construction media companies with an established portfolio of digital magazines

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