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

Straitons Whitelaw: A Language of Quality

10/01/2018Straitons Whitelaw: A Language of Quality

Straitons Whitelaw has developed from a company formation agency to a boutique law firm providing comprehensive legal, tax consulting, and corporation services from their offices in London, Hong Kong and Malta.

RPA in Insurance: Key Cases and Implementation Tips

09/02/2023RPA in Insurance: Key Cases and Implementation Tips

The insurance industry is entering yet another turbulent period after having recovered from the COVID-19 pandemic decline. The unstable macroeconomic and geopolitical landscape, rising inflation rates, currency fluctuations, and the threat of a global recessio

Ones to Watch in IP

01/04/2016Ones to Watch in IP

Emerging from a modest commercial law practice in downtown Manila at the turn of the 20th century, Romulo Law is today one of the largest and most highly regarded law firms in the Philippines.

10 Simple Steps to Take Right Now to Secure Your Business From Email Scams

13/02/202010 Simple Steps to Take Right Now to Secure Your Business From Email Scams

When dealing with email scams in business, you must ensure you are taking every step possible to prevent a co-worker or employee from falling victim to one. Companies offer hackers or scammers with more people to trick, so they are frequent targets. Luckily, t

Bristow acquisition of Airnorth

19/03/2015Bristow acquisition of Airnorth

Bristow Group Inc. (NYSE: BRS), a leading provider of helicopter services to the worldwide offshore energy industry, announced that its affiliate, Bristow Helicopters Australia Pty Ltd., acquired an 85 - percent interest in Airnorth, [Inc., Ltd. and subsidiari

How to Start Managing Your Finances

12/01/2022How to Start Managing Your Finances

Any person is interested in multiplying money. The fact is that the modern rhythm of life involves certain expenses and all people are interested in a comfortable life. But how to improve your finances? Here are the best money management tips to change your li

ShipEngine and What3words Partner to Enhance Online Delivery Experiences

26/07/2024ShipEngine and What3words Partner to Enhance Online Delivery Experiences

ShipEngine, a leading shipping API, today announces that it has partnered with innovative location technology what3words, enabling seamless deliveries and strengthening the online customer experience. From today, what3words has been added to ShipEngine’s rob

GomSpace Completes Acquisition of NanoSpace

17/10/2016GomSpace Completes Acquisition of NanoSpace

GS Sweden AB the parent company of GomSpace ApS, has agreed with the Swedish Space Corporation to acquire 100% of the shares of NanoSpace AB, a wholly owned subsidiary of SSC.

Banking on Success

26/01/2017Banking on Success

Founded in 1899, and headquartered in Nicosia, Cyprus, Bank of Cyprus is today the leading banking and financial services group in Cyprus, with significant market shares across all businesses. Today, Marios Skandalis is the Director of the Group Compliance Div

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