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 Small Businesses Can Leverage Technology for Operational Efficiency

28/05/2024How Small Businesses Can Leverage Technology for Operational Efficiency

If you ask established entrepreneurs, small businesses often operate with razor-thin margins. Successful ones will tell you that the quest for operational efficiency is not just a mantra but a necessity. But how can technology be your ally in this fight?

Wells Fargo Announces New Startup Accelerator Class

17/11/2015Wells Fargo Announces New Startup Accelerator Class

Three Bay Area startups seek to shape the future of financial services.

Shifting Sands – How Bank Managers have Joined the Alternative Finance Boom

09/03/2018Shifting Sands – How Bank Managers have Joined the Alternative Finance Boom

While many SMEs are worried about the transforming banking landscape, business leaders need not fear that all the experts are disappearing - they may just have to look elsewhere to find them.

Record Rise in Companies Launched by Women

02/12/2025Record Rise in Companies Launched by Women

A government-backed review has revealed that a record number of women started their own businesses in 2022 despite the challenging economic climate. The Rose Review, led by Alison Rose, chief executive of NatWest Group, was commissioned by the Government in 20

Uxin raises US$170 million from Baidu, KKR and Coatue

18/03/2015Uxin raises US$170 million from Baidu, KKR and Coatue

Leading Chinese used car auction company expands into B2C market

Ferag and Sparck Collaborate in ‘Game-Changer’ for Automated efulfilment

19/11/2024Ferag and Sparck Collaborate in ‘Game-Changer’ for Automated efulfilment

In an ecommerce industry first, systems integrator, Ferag, and auto-boxing specialist, Sparck Technologies, have collaborated to develop a continuous ‘one touch’ process from order-picking to individual ‘fit-to-size’ boxes ready for despatch.

5 Ways To Lessen Your Business’s Carbon Footprint

13/04/20235 Ways To Lessen Your Business’s Carbon Footprint

The world is becoming more aware of environmental sustainability. Industries are shifting how they operate, from sourcing and production to waste disposal, to meet their obligations in environment conservation.

Real Estate Investment Strategy 2023

23/02/2023Real Estate Investment Strategy 2023

Investing in real estate allows for the diversification of portfolios and the generation of passive income. You can start as a beginner in real estate investing and become a successful investor.

Team Building – is Sailing the Answer?

03/01/2023Team Building – is Sailing the Answer?

No matter how big or small your organisation is, there is always a call for creating a better team environment. This aids not only better communication between departments (which can make for faster and better solutions to business issues) but also increased r

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