Yahoo Spins Off Stake in Chinese E-Commerce Company Alibaba
Yahoo announced Tuesday that it is spinning off its 15 percent investment in Chinese e-commerce firm Alibaba, avoiding any taxes on this move.
Yahoo announced Tuesday that it is spinning off its 15 percent investment in Chinese e-commerce firm Alibaba, avoiding any taxes on this move.
Yahoo’s remaining holdings in Alibaba Group will go into a newly-formed independent registered investment company, SpinCo. Yahoo will continue to hold its 35.5 percent interest in Yahoo Japan. SpinCo will own Yahoo’s remaining 384 million shares of Alibaba — a $40 billion valuation, based on the closing price on Jan. 26.
Yahoo CEO Marissa Mayer explained the move in a press release:
Today, along with our Board of Directors, I am proud and happy to announce a plan for a tax-free spin-off of our Alibaba holdings.
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