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

From India to International

23/05/2022From India to International

Initially formed in 1992, Krishna & Saurastri Associates LLP began its journey in the industry when it merged with a law practice set up in 1956. Recognised as the Leading Intellectual Property Prosecution Law Firm of the Year, Krishna & Saurastri Associates L

Crypto Payment Solutions Designed to Cash-In

13/02/2024Crypto Payment Solutions Designed to Cash-In

CoinsPaid proudly provides a crypto payment ecosystem suitable for use by both businesses and individuals, thanks to groundbreaking solutions that are tailored to a client’s every need.

Measuring Success in Change Management: Metrics, KPIs, and Evaluation Methods

23/05/2024Measuring Success in Change Management: Metrics, KPIs, and Evaluation Methods

Change practitioners are expected to measure the contributions of all their change management activities in order to achieve the desired success on their projects. Change is something that every organization needs to go through to progress. By adopting t

Competent, Professional & Multidisciplinary

07/12/2016Competent, Professional & Multidisciplinary

YUASA and HARA is a multidisciplinary firm combining legal, IP prosecution and accounting/tax services.

AI To the Rescue: First Aid for Busy Contact Centres in Local Government

24/08/2020AI To the Rescue: First Aid for Busy Contact Centres in Local Government

Can Artificial Intelligence (AI) really deflect calls away from the contact centre? This is the question many local government organisations are asking as they strive to serve the community at reduced cost.

Most Innovative Law Firm 2016

30/06/2016Most Innovative Law Firm 2016

Faber & Allin Inc. is a general legal practice with a specialist focus on litigation. Over the years, the firm has diversified its areas of practice to include intellectual property Law, as well as corporate and commercial law.

A Goliath in Management Consultancy

13/01/2023A Goliath in Management Consultancy

Advisory Group AG offers a wide range of strategic change advisory services from strategy design to successful implementation and transformation. Following the firm’s recognition in the 2022 AI Leading Advisor Awards as the ‘Leading Boutique Management Con

Manufacturing Growth Going Steady

24/03/2015Manufacturing Growth Going Steady

Activity in the manufacturing sector remained broadly steady in March, according to the CBI's latest Industrial Trends Survey.

Automating the Future

31/07/2016Automating the Future

Seal Software is the leading provider of artificial intelligence-based solutions for contract discovery, extraction, and analytics. We got the chance to speak to them about how they have grown to becoming leaders in their industry, and why they continue to str

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 14 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