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

Leading Drug Education Charities, Angelus and Mentor to Merge

29/09/2016Leading Drug Education Charities, Angelus and Mentor to Merge

Angelus is the only UK charity dedicated to raising awareness of the risks from new psychoactive substances (also known as 'legal highs'). Mentor UK is the UK's leading charity working to prevent the misuse of alcohol and drugs among children and young people.

Reasons Why IT Support Is More Critical Than Ever For Today’s Businesses

31/10/2022Reasons Why IT Support Is More Critical Than Ever For Today’s Businesses

As digital transformation and remote work continue to gain steam, IT services remain absolutely indispensable for businesses of all types and sizes. Whether an in-house team dedicated to the maintenance and upkeep of systems or a reliable outsourced support pr

TM Capital Corp Advises Jordan Company Through Purchase of DiversiTech

24/06/2015TM Capital Corp Advises Jordan Company Through Purchase of DiversiTech

TM Capital Corp Advises Jordan Company Through Purchase of DiversiTech

Most Innovative Tax Service Provider – UK

20/05/2016Most Innovative Tax Service Provider – UK

We at The Oxford Silk Partnership have been providing bespoke business services for over thirty years.

CEO of the Year, Germany

29/02/2016CEO of the Year, Germany

Linguatec develops and markets leading edge language technology solutions for Machine Translation, Automatic Speech Recognition and Speech Synthesis.

(UK) Top Tips to Steer Business Through New Tax Year

02/04/2015(UK) Top Tips to Steer Business Through New Tax Year

As businesses enter the new tax year on 6 April, ICAEW are urging businesses to get their finances into shape and prepare for new tax arrangements.

5 Capabilities of Dynamics 365 Business Central for Manufacturers

11/02/20255 Capabilities of Dynamics 365 Business Central for Manufacturers

Dynamics 365 Business Central, a powerful cloud-based ERP system provided by Microsoft, is successfully used by thousands of SMBs across many industries.

Malicious Intent Outweighs Technology as Biggest Threat to Personal Data

15/03/2019Malicious Intent Outweighs Technology as Biggest Threat to Personal Data

Against the backdrop of a complex and growing cyber threat landscape, organisations are waking up to the fact that one of the biggest chinks in their armour against a data security breach is humans. In fact, a staggering fifty two percent of respondents believ

Avant Diagnostics and Amarantus Diagnostics to Combine with Theranostics Health

07/03/2016Avant Diagnostics and Amarantus Diagnostics to Combine with Theranostics Health

Avant Diagnostics, Inc, a biotechnology company focused on the development of oncology based diagnostics, and Amarantus Diagnostics, Inc, a wholly-owned subsidiary of Amarantus BioScience Holdings, Inc, today announced that the companies have jointly entered i

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