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

ICO issued fines of £42million last year

20/04/2021ICO issued fines of £42million last year

Fines handed out for breaches of Data Protection Act (DPA) and Privacy and Electronic Communications Regulations Act (PECR).

The Smart City Technology Market is Expected to Be Worth More Than $27.5 Billion Annually by 2023

13/02/2015The Smart City Technology Market is Expected to Be Worth More Than $27.5 Billion Annually by 2023

A recent report from Navigant Research examines the strategy and execution of 16 leading smart city suppliers.

AI-Powered Alternative Data Driving Extreme Market Research Disruption

04/06/2024AI-Powered Alternative Data Driving Extreme Market Research Disruption

Numerous indicators make clear that the next five years will usher in extreme transformation for a multitude of industries and sectors as well as the global economy at large. This begs the question: what is driving such significant and rapid change? This big q

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

7 Best Accounts Receivable Platforms for 2025

21/08/20257 Best Accounts Receivable Platforms for 2025

Managing cash flow effectively is critical for any business, and accounts receivable (AR) platforms have become essential tools for ensuring payments are collected on time, processes are streamlined, and customer relationships remain strong. In 2025, these sol

BREXIT Could be Expensive – Especially for the United Kingdom

27/04/2015BREXIT Could be Expensive – Especially for the United Kingdom

Exiting the EU could cost the United Kingdom more than €300 billion.

What You Need to Know About Microsoft 365 Copilot, the Ultimate AI Assistant

25/01/2024What You Need to Know About Microsoft 365 Copilot, the Ultimate AI Assistant

Microsoft 365 Copilot is the new AI powered solution from Microsoft, and it looks set to revolutionise the way we work. Microsoft have this week announced they are removing the 300-seat purchase minimum for commercial plans and making Microsoft 365 Copilot ava

Nicolin Assogba: A Multifaceted Legal Masterclass in Benin and Beyond

08/12/2025Nicolin Assogba: A Multifaceted Legal Masterclass in Benin and Beyond

For almost ten years now, Nicolin Assogba has been a partner lawyer at D2A Société Civile Professionnelle d’Avocats (SCPA D2A), a Benin-based law firm located in Cotonou, the country’s largest city.

Commercial and Private Client Advisory Services

29/02/2016Commercial and Private Client Advisory Services

Veale Wasbrough Vizards (VWV) is a UK top 100 law firm with offices in London, Bristol, Birmingham and, from 1 February, Watford. We are a full service firm in our locations offering commercial and private client advisory services, with a national presence in

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