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

Streamlining Acquisitions: The Role of Digital Legal Document Forms

24/02/2026Streamlining Acquisitions: The Role of Digital Legal Document Forms

In the high-stakes environment of Mergers and Acquisitions (M&A), the velocity of a deal is frequently dictated by the state of a company’s paperwork. Experienced dealmakers know that time kills all deals; when documentation is fragmented or outdated

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

Arganto Advises Empact through Solving Efeso International’s Acquisition.

07/05/2015Arganto Advises Empact through Solving Efeso International’s Acquisition.

Arganto Advises Empact through Solving Efeso International's Acquisition.

Garden Centres, Horticultural Properties/ Businesses and Farm Shops – The Same Service to All

09/06/2017Garden Centres, Horticultural Properties/ Businesses and Farm Shops – The Same Service to All

2016 Global Excellence Awards UK award recipient is Quinton Edwards, specialist property and business surveyors based in Newbury, West Berkshire. We interviewed expert Simon Quinton Smith to discover more about the firm’s specialist property and business off

How Do Worker’s Compensation Laws Differ Around the USA?

27/02/2023How Do Worker’s Compensation Laws Differ Around the USA?

IMG Source – https://unsplash.com/photos/p3Ip8U0eNNM Workers’ compensation is essentially an insurance that provides workers with lump sum compensation, a wage replacement, and medical benefits if they incur injuries, or become ill as a result of perfo

Money-Making Magic: Discovering Exciting and Profitable Investment Ventures

19/07/2023Money-Making Magic: Discovering Exciting and Profitable Investment Ventures

Investing has always been a gateway to financial growth and security. Even so, it doesn't have to be all about numbers and charts. Investment ventures not only generate significant returns – they bring excitement and thrill to the table.

Corporate Social Responsibility

24/10/20233 Ways to Optimise AML Controls for ESG Concerns

ESG (Environmental, Social, and Governance) has become a top focus for many organisations as customer and shareholder demands for greater commitment grow, coupled with increasing regulatory expectation.

31/08/2016Win Win Win

As South Africa’s largest privately-owned insurance group, the Hollard Insurance Group includes the Hollard Insurance Company, Hollard Life Assurance Company and Hollard Investment Managers.

Is Call Tracking Your Marketing Saviour?

09/01/2023Is Call Tracking Your Marketing Saviour?

If you’re looking to revitalise your company’s marketing and boost your business success, there’s one tool that’s perfect for the job — call tracking software.

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