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

Sensoring Future Growth

05/11/2015Sensoring Future Growth

Global image sensors market to grow at 10.30% CAGR to 2020 with consumer electronics having major market share

Transfer Pricing

01/07/2016Transfer Pricing

BDO is an international network of public accounting, tax and advisory firms which perform professional services under the name of BDO. We have representation in 157 territories, with 64.300 people working out of over 1.400 offices worldwide.

CEO of the Year, California

02/02/2016CEO of the Year, California

Ghost Systems, Inc. (Ghost) was formed in January 2014.

5 Roles of Tax Accountants in Gold Coast in Financial Planning and Wealth Management

08/07/20245 Roles of Tax Accountants in Gold Coast in Financial Planning and Wealth Management

5 Roles of Tax Accountants in Gold Coast in Financial Planning and Wealth Management Tax accountants in Gold Coast play a pivotal role in financial planning and wealth management. Their expertise extends beyond mere tax preparation, encompassing strategic plan

North American M&A Volume Increased in November

15/12/2015North American M&A Volume Increased in November

There were 1,556 mergers and acquisitions (M&A) deals worth a combined USD 121,727 million targeting North American companies announced in November.

Preserving a Heritage of Excellence

23/05/2018Preserving a Heritage of Excellence

Proserv is a global leader with a worldwide presence, offering a fresh alternative in the delivery of engineering and technical services to the energy, process and utility markets.

The Role of Technology in Modern Business Operations

27/03/2023The Role of Technology in Modern Business Operations

In today's fast-paced and highly competitive business landscape, technology has become an indispensable tool that is used to optimize and streamline business operations.

Answering All the Right Questions for Distribution Network Optimization

12/05/2016Answering All the Right Questions for Distribution Network Optimization

In today’s rapidly changing distribution environment, it’s critical for businesses to look inside and outside the box, in order to optimize the entire network as well as warehouse labor and capacity.

How to Sell a Business in New York: Tips, Advice and Best Brokerage Firms

25/09/2025How to Sell a Business in New York: Tips, Advice and Best Brokerage Firms

Selling a business in competitive and highly regulated markets like New York is a big decision that requires a clear strategy and professional guidance. From preparing your company to closing a deal, you need the right team and careful planning to secure the b

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