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

6 of the Latest Digital Workflow Automation Developments Your Business Should Be Taking Advantage Of

21/08/20256 of the Latest Digital Workflow Automation Developments Your Business Should Be Taking Advantage Of

Digital workflow automation advancements save business owners time and money while supporting accuracy and helping them achieve goals with fewer team members. Companies that embrace automated processes are often more competitive and agile than their counterpar

6 Forms of Technology That Are Streamlining Healthcare Provision in 2023 and Beyond

24/05/20236 Forms of Technology That Are Streamlining Healthcare Provision in 2023 and Beyond

The healthcare industry is experiencing a major transformation with the introduction of new technologies. New technology is changing how we access and deliver healthcare services, from electronic health records to telemedicine.

How Wrongful Death Attorneys Help Loved Ones of Victims Seek Maximum Compensation

17/04/2023How Wrongful Death Attorneys Help Loved Ones of Victims Seek Maximum Compensation

While nothing can bring your loved one back after a wrongful death, and no amount of money can truly compensate you for your loss, receiving maximum compensation can bring your family a sense of justice, closure, and financial security.

The Business and Legal Implications of the Shift to Cycling Commutes

27/01/2026The Business and Legal Implications of the Shift to Cycling Commutes

Shifts in commuting patterns are becoming increasingly common across professional environments. Rising fuel costs, sustainability initiatives, and changing workplace expectations have led many professionals to adopt cycling as a primary mode of transport. Whil

03/10/2017Top Marks

Top Marks

ICO issued fines of £42million last year

20/04/2021ICO issued fines of £42million last year

Fines handed out for breaches of Data Protection Act (DPA) and Privacy and Electronic Communications Regulations Act (PECR).

Pioneer Bank Merger is Successfully Completed

29/02/2016Pioneer Bank Merger is Successfully Completed

Pioneer Bancshares, Inc., the holding company for Pioneer Bank SSB, successfully completed its merger with FC Holdings, Inc.

Ten Biggest Legal Mistakes Tech Start-ups Make

15/06/2018Ten Biggest Legal Mistakes Tech Start-ups Make

This month my company (A City Law Firm) marked our ten-year anniversary, which has made me think back to our first year, how we started and some of the early mistakes we made.

Employment Law at its Finest

18/06/2019Employment Law at its Finest

Flichy Grangé Avocats is a law firm specialising in employment law and social law for companies. Recently, it was awarded Most Outstanding Employment Law Firm 2018 – France for its work.

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