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

These Are the Four Tech Hurdles All Businesses Must Overcome to Grow & Succeed in the Second Half of 2025

09/07/2025These Are the Four Tech Hurdles All Businesses Must Overcome to Grow & Succeed in the Second Half of 2025

A LEADING tech and business expert has outlined the four biggest hurdles SMEs are likely to face in the second half of 2025.

Safety Made Simple

22/03/2023Safety Made Simple

Detecting a range of dangerous gases in the atmosphere, gas detectors are an essential part of safety equipment and are a requirement to meet CO2 storing compliance codes.

Meeting the Highest Standards of Competence and Professionalism

30/08/2019Meeting the Highest Standards of Competence and Professionalism

Boccadutri is an Italian law firm that specialises in assisting international clients with legal matters in Italy and Italian clients abroad.

Working From Home Can Slash Payback Periods for EV Drivers

10/11/2022Working From Home Can Slash Payback Periods for EV Drivers

According to insight from the Office for National Statistics (ONS), more than 38% of the UK workforce now enjoy either a part-hybrid or totally remote role. While sceptics have suggested that this trend will begin to fall in-line with retreating COVID-19 cases

04/05/202178% of Comms Leaders Say Protecting Their Brand’s Reputation is Unmanageable

Survey finds threats such as activism, fake news and cancel culture have transformed the reputational risk landscape in the last five years.

Why CFDs Are Worth Your Time, Attention, and Trades

10/07/2020Why CFDs Are Worth Your Time, Attention, and Trades

While some markets are struggling with an economic downturn, investors have been keeping busy. During the first half of 2020, there has been an uptick in trading activity across the world’s markets. In particular, significant growth was seen in stock and ind

One in Three Enterprise Devices Lack Encryption as Shadow AI Runs Wild

01/10/2025One in Three Enterprise Devices Lack Encryption as Shadow AI Runs Wild

Over one in three (35)% of enterprise PCs are not encrypted, despite standard security policies, amid millions of visits to generative AI platforms such as DeepSeek, often without formal approval or monitoring.

The Future of Financial Markets

01/07/2017The Future of Financial Markets

Thomson Reuters Corporation (Thomson Reuters) is a provider of news and information for professional markets and recently won the 2017 Business Elite from Switzerland award, after which we invited them to profile their varied work in the field of financial mar

The Challenges of Foreign Investigations in Business

01/03/2024The Challenges of Foreign Investigations in Business

Technological advancements have been helpful for businesses and corporations operating across multiple countries. Global operations have allowed for more profit potential and advanced reach. However, they have also posed problems when a company has concerns ab

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