Yahoo to spin off Alibaba holdings
Yahoo announced last night, as part of its earnings call, that it will be spinning off its holdings in Chinese ecommerce company Alibaba in an attempt to limit its tax liabilities.
Yahoo owns about 15.4% of Alibaba and the move will mean it won’t pay billions of dollars in future taxes. The move will be completed by year end and the 100% of the new shares will be distributed to Yahoo and its shareholders.
“Yahoo believes the transaction will achieve the most advantageous return of capital to our shareholders with the absolute highest probability of success. The transaction is designed to maximize value of Yahoo’s Alibaba holdings exclusively to Yahoo’s shareholders,” said a statement.
Seems to have worked out a treat for Yahoo.