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

The International Pillar for Geo-Information

08/08/2023The International Pillar for Geo-Information

Through specialising in geo-information services, GEO-MIK has redefined what it means to portray an unrelenting sense of brilliance. Its

New Store Setup Checklist: 5 Vendors to Hire (+ Timeline and Top-Rated Options for Each)

29/09/2025New Store Setup Checklist: 5 Vendors to Hire (+ Timeline and Top-Rated Options for Each)

Opening a new store is exciting, but it can also feel like juggling flaming torches while balancing on a ladder — every detail matters and timing is everything. Your launch depends not just on vision and location, but on the vendors you hire and when you hir

How to Grow Your Business

03/03/2020How to Grow Your Business

Growing your business is the goal of any new business owner. Starting up is excellent, getting those first customers are wonderful, but it is only when you surpass breaking even can you officially say that you have made it.

The Impact of a Brexit on the European E-Money Market

23/06/2016The Impact of a Brexit on the European E-Money Market

Craig James, CEO at Neopay, discusses the potential impact and implications of a Brexit on the future development of this sector.

Country Style Cooking Announces Shareholder Approval of Merger Agreement

20/04/2016Country Style Cooking Announces Shareholder Approval of Merger Agreement

Country Style Cooking Restaurant Chain Co Ltd, a quick service restaurant chain in China, announced at an extraordinary general meeting today, the Company's proposal to authorise and approve the previously announced agreement and plan of a merger dated Decembe

8 Tips for a Successful Career in EdTech

26/01/20248 Tips for a Successful Career in EdTech

The educational technology (EdTech) sector is rapidly transforming the landscape of learning and teaching across the globe. With advancements in technology continually emerging, the demand for skilled professionals in this field is growing exponentially. Wheth

Everything You Wanted To Know About Becoming An LLC

29/07/2022Everything You Wanted To Know About Becoming An LLC

In the 90s, limited liability companies (LLCs) rose in popularity as the newest business entity structure available in the United States. Budding companies enjoyed the liability protection provided by this formation style because it keeps personal assets separ

Startup Businesses Are Going International Faster, Experts Reveal Mistakes to Avoid

08/07/2026Startup Businesses Are Going International Faster, Experts Reveal Mistakes to Avoid

It is estimated that around 50% of startups globally actively recruit internationally. With millions of startups worldwide, international hiring is becoming a core growth strategy for startups as competition for specialist skills intensifies and remote work be

Scope of Opportunity

03/04/2017Scope of Opportunity

Launchpad Five One Six is a management consulting firm that works with companies on evaluating and correcting problematic areas within their business. Winners of Most Innovative Management Consultancy 2017, Launchpad is a boutique firm that works with business

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