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

Forget GameStop, gamification is the real investing revolution

05/03/2021Forget GameStop, gamification is the real investing revolution

The impact on the financial world was sensationally underlined in the US, when a swathe of retail investors sought to bring down eminent hedge funds by bidding up the beleaguered GameStop stock. Behind the David and Goliath headlines, are some trends that the

When Is the Right Time to Seek IT Consulting Services?

19/11/2021When Is the Right Time to Seek IT Consulting Services?

The rise of the internet and the development of information technology (IT) have enabled businesses to promote their operations from local to international markets. This involves using computer tools and programs to connect with customers, workers, and other s

Beyond Chatbots: Why a Human-Centric Approach is Key to Digital Transformation Success

17/03/2025Beyond Chatbots: Why a Human-Centric Approach is Key to Digital Transformation Success

The rapid advancement of Artificial Intelligence [AI] and automation has ignited a digital revolution across industries.

Coca-Cola to Acquire Chinese Beverage Firm for $400.5 Million

22/04/2015Coca-Cola to Acquire Chinese Beverage Firm for $400.5 Million

Coca-Cola Co., the world’s largest beverage company, will buy China’s Xiamen Culiangwang Beverage Technology Co. for about $400 million in cash, gaining a line of plant- based protein drinks in a renewed push into the Asian market.

Providing TailorMade Solutions for Your Business

20/12/2017Providing TailorMade Solutions for Your Business

Horev & Co. Law Office is a boutique law firm offering its clients individually tailored legal services in various commercial fields.

Navigating the Personalization Trend: Incorporating Customized Visual Content into Your Corporate Identity

04/03/2024Navigating the Personalization Trend: Incorporating Customized Visual Content into Your Corporate Identity

Why settle for off-the-shelf when the game has changed? Customized visual content isn’t just a trend; it’s a cornerstone of corporate identity in today’s competitive landscape. It weaves the unique narrative of your brand and acts as a beacon

The Simple Banking Adjustments That Improve Profit Margins

29/12/2025The Simple Banking Adjustments That Improve Profit Margins

Key Takeaways Small banking costs can quietly reduce business profit over time Modern providers now offer reliable business accounts without monthly fees Automating payments and improving visibility saves time and prevents errors Efficient financial operations

Giving A Personal Touch to Clinical Trials

01/03/2018Giving A Personal Touch to Clinical Trials

GlobalCare Clinical Trials brings over 100 years of experience in the clinical trials and home healthcare industries supporting over 400 studies in over 50 countries by effectively delivering high quality and convenient clinical trial services in the home or a

6 Ways You Can Track Employee Hours Online

18/01/20216 Ways You Can Track Employee Hours Online

Employee tracking provides accurate logging of employee hours, giving smarter insights not only into projected labor costs but also into employee efficiency and productivity. Accurate employee hours allow employers to generate more accurate payroll numbers to

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