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

AI Financial Fraud: How Fraudsters Are Using AI (& How to Combat It)

06/01/2025AI Financial Fraud: How Fraudsters Are Using AI (& How to Combat It)

Tackling financial fraud has become more difficult than ever in recent years, thanks to the increasing prevalence of AI (artificial intelligence) in financial fraud.

Acquisition of Barclays’ Trust Business Completes

18/01/2016Acquisition of Barclays’ Trust Business Completes

An independent investor group, led by the Sarikhani and Nielsen families, today announced the completion of the acquisition of a majority shareholding in Barclays’ trust and fiduciary business.

Stephen Lee – A Barrister -At-Law on the Case

31/08/2016Stephen Lee – A Barrister -At-Law on the Case

Based in Brisbane, I am a barrister, mediator and arbitrator. As a Barrister, I appear in courts and tribunals in both Australia and beyond, and I am qualified to appear in Australia, England and Wales and New York.

Best Practices to Minimize VAST Error Codes in Video Advertising

11/12/2023Best Practices to Minimize VAST Error Codes in Video Advertising

The landscape of digital advertising is witnessing a monumental shift, propelled by the dynamic and immersive world of video advertising. In this industry, the video ad serving template (VAST) is a pivotal framework for managing the seamless delivery of video

Mountain Capital Acquires Zep

15/04/2015Mountain Capital Acquires Zep

Zep Inc. Enters into Definitive Agreement to Be Acquired by New Mountain Capital

Connecting to Success

24/10/2019Connecting to Success

In a world that is increasingly focused on incorporating the latest technology and software, it is important to ensure that all industries have the ability to solve problems using high-performance computing systems. X-ISS is a cross-platform management and ana

2016 Influential Business Woman Awards FAQs

18/02/20162016 Influential Business Woman Awards FAQs

2016 Influential Business Woman Awards FAQs

End-to-End Warehouse Management

30/01/2024End-to-End Warehouse Management

Any warehouse owner or operator will tell you that managing stock can be one of the trickiest parts of the job. Despite recent upgrades in technology, it seems as though the older methods are still being deployed to this day, with little room for improvement.

‘Amazon Business Exchange’ Returns in 2020 to Help Procurement Leaders Succeed in the ‘New Normal’

02/10/2020‘Amazon Business Exchange’ Returns in 2020 to Help Procurement Leaders Succeed in the ‘New Normal’

The Amazon Business Exchange (ABX) conference is set to return after its debut in London last year, and will take place on the 6th and 7th of October as a virtual event.

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