Yahoo Looking to Unload $14B Alibaba Stake Tax-Free
Also hoping to sell Yahoo Japan assets
In the midst of planning its own possible sale, beleaguered Internet giant Yahoo is exploring a new plan to get rid of its valuable Asian holdings—without having to pay any taxes.
According to The Wall Street Journal, the company is considering a strategy called a “cash-rich split-off” that would allow it to sell its 40 percent stake in Chinese e-commerce company Alibaba—valued at $14 billion—tax-free, saving about $5 billion.
In order to perform a cash-rich split-off, Alibaba would have to place cash and assets into a newly created subsidiary.
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