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

How Much of Your Income Should You Save Every Month?

21/06/2022How Much of Your Income Should You Save Every Month?

Image Source: Unsplash From luxurious holidays to fancy cars, we all want to live our lives to the fullest while we’re young, but our lifestyles shouldn’t come at the cost of retirement. Our financial safety nets can also help us prepare for emergencies an

How to Hire Your First Employee for a Small Business: 6 Important Steps

Corporate Social Responsibility

12/06/2023How to Hire Your First Employee for a Small Business: 6 Important Steps

The excitement of hiring your first employee is something you’ll probably remember for years to come. But this step is also a giant leap of faith you need to take for your small business to move forward.

Healthcare Consultancy Group: Reimagining Medical Communications

13/10/2023Healthcare Consultancy Group: Reimagining Medical Communications

Healthcare Consultancy Group (HCG) is a medical communications agency made up of seven different agencies united by one common goal: to bring clients’ medicines closer to the patients who need them by accelerating product understanding and acceptance. For it

Boxer Capital, LLC

26/02/2019Boxer Capital, LLC

Boxer Capital, LLC invents and invests in biotechnology companies that aim to drastically improve medicine. To celebrate the firm’s success in this year’s Hedge Fund Awards we profile it to find out more and explore the secrets behind its success.

Safeguarding Small Enterprises: Navigating the Landscape of SME Cyber Threats

30/11/2023Safeguarding Small Enterprises: Navigating the Landscape of SME Cyber Threats

In the dynamic realm of business, Small and Medium-Sized Enterprises (SMEs) are not immune to the pervasive and evolving threats posed by cybercriminals. A recent study by Sharp UK reveals a concerning statistic – a huge one-third of UK SMEs lack any sec

Best AI & Data Advisory Firm – Nordics

17/02/2023Best AI & Data Advisory Firm – Nordics

The AI Framework is on a mission towards accomplishing an intelligent future, with its experts dedicated to implementing AI-driven transformations for client organisations. As the company is recognised within the Artificial Intelligence Awards 2022, we got in

Moody’s Analytics Predicts One of the Longest Economic Expansions in History

26/03/2015Moody’s Analytics Predicts One of the Longest Economic Expansions in History

Moody's Analytics, a leading provider of economic forecasts, expects the current US economic expansion to be one of the longest in history, as jobs continue to grow, wages revive, and households and businesses balance sheets strengthen.

IBM Closes Acquisition of Resource/Ammirati

24/02/2016IBM Closes Acquisition of Resource/Ammirati

IBM today announced it completed the acquisition of Resource/Ammirati -- a leading, US-based digital marketing and creative agency -- to join IBM Interactive Experience or IBM iX, the world's largest digital agency. Financial terms were not disclosed.

19/05/2016AI Ad Specs

AI Ad Specs

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