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 Digital Magazine Marketing Strategies Help Your Business Reach the Maximum Audience

11/01/2024How Digital Magazine Marketing Strategies Help Your Business Reach the Maximum Audience

How Digital Magazine Marketing Strategies Help Your Business Reach the Maximum Audience Today’s digitally-driven world offers a creative and practical way to reach a large audience: digital magazine marketing. This marketing tactic makes digital magazine

Trigon Advise on Public Consulting Group’s Acquisition of Librus from Oresa Ventures

27/08/2015Trigon Advise on Public Consulting Group’s Acquisition of Librus from Oresa Ventures

Trigon Advise on Public Consulting Group's Acquisition of Librus from Oresa Ventures

Ladies of Legacy: Women to Remember and Celebrate this International Women’s Day

06/03/2023Ladies of Legacy: Women to Remember and Celebrate this International Women’s Day

Don’t let International Women’s Day pass by without giving powerful women the recognition they deserve. Women are smart, slick, practical, and loyal - and you’ve likely taken inspiration from other women over the years.

Steps You Can Take to Prevent and Mitigate Cybercrime in Your Company

21/10/2022Steps You Can Take to Prevent and Mitigate Cybercrime in Your Company

In 2022, the war on cybercrime is continuing as criminals get savvier and continue to seek new ways to exploit businesses and the public online. Back in 2016, we noted here at Acquisition International that cybercrime was a looming threat. It's therefore no su

Project Tengu Could Create the Next Wave of AI Winners

25/05/2026Project Tengu Could Create the Next Wave of AI Winners

Anthropic’s Claude Code parts were accidently exposed In March 2026. when a sourcemap in an npm package revealed thousands of lines of internal code, sparking wide developer analysis and coverage of the leak. That leak focused attention on Claude Code Anthro

Heilind Acquires German Distributor MPS Group

29/04/2015Heilind Acquires German Distributor MPS Group

Heilind Electronics, one of the world's largest distributors of interconnect products, has acquired MPS Group, a leading distributor of electronic components and manufacturer of cable assemblies for the European Mil-Aero Marketplace.

Kodiak’s Acquisition of Zarsky Lumber

21/05/2015Kodiak’s Acquisition of Zarsky Lumber

Kodiak's Acquisition of Zarsky Lumber

Holding the Answers to all your Questions

21/03/2018Holding the Answers to all your Questions

Floresta Longo e Associati (FLA) is a professional association of specialised lawyers, tax and labour consultants, and has been named in AI’s Global Excellence Awards as the Best Administrative Law Firm within in Italy in 2018.

Supporting Risk Takers

15/08/2023Supporting Risk Takers

With a passion for providing its expertise to organisations of all sizes around the world, TaxCoach is a trusted consultancy firm that offers a variety of financial services to help clients succeed in their endeavours.

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