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

Portugal: A Promising Future

22/01/2015Portugal: A Promising Future

Acoq is a consultancy firm situated in Portugal. They talk us through Portuguese economic recovery and the challenges it brings to their business.

Understanding The Different Types of FHA Loans In 2022

08/09/2022Understanding The Different Types of FHA Loans In 2022

Most people looking to buy a house in the near future will also have to review the market for suitable loans.

Golden Opportunities in Indonesia’s IP Industry

31/08/2016Golden Opportunities in Indonesia’s IP Industry

Am Badar & Partners is one of the leading intellectual property (IP) firms in Indonesia. The firm was founded by Mr Toetoen Ambadar, SH and established as legal entity on September 2 1965.

CEO of the Year – Wisconsin

02/02/2016CEO of the Year – Wisconsin

WEC Energy Group, Inc, (NYSE: WEC) is one of the nation’s premier energy companies, serving 4.4 million electric and natural gas customers in Wisconsin, Illinois, Michigan and Minnesota.

Protecting Your Assets and Your Future: When to Seek Specialized Legal Counsel

27/05/2024Protecting Your Assets and Your Future: When to Seek Specialized Legal Counsel

New York City is synonymous with success. Wall Street titans, real estate moguls, and entrepreneurs who’ve built their empires all call it home. But behind the private jets and Fifth Avenue penthouses lies a reality those of more modest means rarely have

Strategic Cleaning: Enhancing Health, Morale, And Profits

Corporate Social Responsibility

30/08/2023Strategic Cleaning: Enhancing Health, Morale, And Profits

As a business owner, you want your company to succeed in every aspect, and one often overlooked area is the cleanliness of your workspace. A clean office serves as a reflection of your company's values and professionalism.

Lexial Is A Leading Law Firm

15/02/2021Lexial Is A Leading Law Firm

Created in 2007, Lexial Law Firm is an international beacon of excellence within the two main fields of business immigration law, and international criminal and political law. With offices across continental Europe, there is much to admire about this firm, inc

3 Business Benefits of Transitioning to the Hybrid Cloud

26/07/20223 Business Benefits of Transitioning to the Hybrid Cloud

Cloud computing is becoming more popular as it assists companies in processing large volumes of data, allowing them to adapt quickly and cater to the business’s and its employees’ ever-changing needs. It also facilitates global deployment, paving the way f

Planning for Future Financial Security

25/10/2019Planning for Future Financial Security

An international consulting firm with offices in London, Miami and New York, Intercorp Group serves high-networth entrepreneurs and their families, finding solutions to often very personal issues. Founded by Leonardo Braune, discover why this firm’s success

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