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

Travers Smith Advise Clayton, Dubilier & Rice’s Acquisition of Motor Fuel Group

17/06/2015Travers Smith Advise Clayton, Dubilier & Rice’s Acquisition of Motor Fuel Group

Travers Smith Advise Clayton, Dubilier & Rice's Acquisition of Motor Fuel Group

10 Cryptocurrencies with The Biggest Growth Potential to Buy Right Now

06/10/202210 Cryptocurrencies with The Biggest Growth Potential to Buy Right Now

When you're just starting in the world of cryptocurrency, the dozens of different cryptocurrencies, from Bitcoin and Ethereum to Dogecoin and Tether, might be intimidating. To help you gain your bearings, these are the top ten cryptocurrencies with the biggest

12 Best WordPress Hosts for Small Businesses Needing Reliable Performance

11/05/202612 Best WordPress Hosts for Small Businesses Needing Reliable Performance

The 12 hosts below all meet a baseline of free SSL, free CDN access, daily or near-daily backups, and at least a 99.9% uptime commitment, so the differences come down to price stability, support quality, and the speed of the underlying stack. Each entry names

A Tenacious Portuguese Law Firm

20/07/2022A Tenacious Portuguese Law Firm

Under the hot Portuguese sun stands a no-nonsense, passionate law firm. Alves, Botelho, Varela & Associados provides advice across the legal spectrum and transgresses borders, offering its expertise to clients around the globe.

BiP Solutions Acquires Pro Mark Media

30/04/2015BiP Solutions Acquires Pro Mark Media

BiP Solutions (BiP), the leading provider of business intelligence solutions for the public/private sector marketplace, has acquired Pro-Mark Media (PMM) - one of the UK's leading construction media companies with an established portfolio of digital magazines

How to Prepare for Inflation and Prevent Money Problems

16/05/2022How to Prepare for Inflation and Prevent Money Problems

Many people have heard the term inflation. Is it really harmful to your personal budget? Yes, inflation means the cost of things increases, and it can affect all the things you purchase on a regular basis including groceries, fuel, and expensive items. Inflati

How the Internet has Transformed Customer Service

Corporate Social Responsibility

24/02/2023How the Internet has Transformed Customer Service

The internet, in the past two decades, has transformed many aspects of life over the years, and some would even say practically all aspects. One area that has been forever changed is customer service as companies are now able to utilize the internet to provide

Leading Dutch IT Recruiters Plug in to Market Needs

07/11/2019Leading Dutch IT Recruiters Plug in to Market Needs

Founded in 2002 and now a market leader for IT recruitment in the Netherlands, Personnel Search IT Recruitment is one of the most reliable and professional offices within the industry. With a strong reputation for professionalism and success built by an elite

3 Top Environmental Consulting Companies in 2025

21/02/20253 Top Environmental Consulting Companies in 2025

Businesses want answers on how to be the most sustainable in their niche. Many shareholders know the journey to implement eco-friendly practices demands time and attention, so it makes sense that everyone wants to delegate the beginning of this process to an e

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