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 Corporate Social Responsibility Can Prevent Workplace Accidents: A Legal Perspective

30/08/2024How Corporate Social Responsibility Can Prevent Workplace Accidents: A Legal Perspective

Corporate social responsibility (CSR) is fundamental to a company’s long-term relationship with its employees, the communities it operates in, and the protection of the environment. The role of CSR in preventing workplace accidents is increasingly being

Revolutionising Medical Training

19/02/2021Revolutionising Medical Training

Established in 2017, Fusetec is a cutting-edge additive manufacturing company utilising the latest 3D technologies. Following the firm’s well-deserved success in Acquisition International’s Global Excellence Award 2020, we caught up with CEO Mark Roe to fi

Scams to be aware of as a professional

06/05/2021Scams to be aware of as a professional

There are numerous opportunities to grow in the business world. You might start a company or look for the best places to invest money, but opportunities aren’t always what they seem to be. These are the most common scams to be aware of as a professional, so

Consolidations Taking Place in the International Money Transfer Space

05/10/2021Consolidations Taking Place in the International Money Transfer Space

And as we move into Q4 2021, more firms in the international money transfer industry are set to add to the fireworks. Overall, though, the industry is about to get less crowded.

What Are the Best Cryptocurrencies to Invest In?

16/11/2021What Are the Best Cryptocurrencies to Invest In?

Which will be the best Cryptocurrency to invest in 2021? The answer will come from a careful assessment of each distinct asset and its suitability for investing in the global marketplace.

Early Easter Puts a Spring in Retailers’ Steps

24/04/2015Early Easter Puts a Spring in Retailers’ Steps

David McCorquodale, UK head of retail comments on the benefits UK Retail saw during the early Easter.

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

How Feasible is a Large-Scale Return to the Office?

15/07/2021How Feasible is a Large-Scale Return to the Office?

The return to the office is turning out to be a lengthy and gradual process as the coronavirus still looms - with many of the world’s workforce still working remotely for the foreseeable future. As many companies grapple with the return to the office, it bea

AI’s Place in the Boardroom: Creating An Effective AI Framework for Staff

04/09/2023AI’s Place in the Boardroom: Creating An Effective AI Framework for Staff

The rise of artificial intelligence (AI) has become a hot topic in the world of corporate governance. Traditionally strategic decision-making was the domain of human decision-makers, but with the integration of AI technologies, we’re now starting to see gove

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