Deals
Yahoo to Spin Off Alibaba Stake Tax-Free as Public Company
This article is for subscribers only.
Yahoo! Inc. announced a tax-free spinoff of its stake in Alibaba Group Holding Ltd., seeking to maximize the return of cash to shareholders and triggering a 10 percent jump in the Web portal’s shares.
The deal will put Yahoo’s holding in the Chinese e-commerce company into a newly registered firm called SpinCo, which will own all of Yahoo’s 384 million Alibaba shares valued at $40 billion, the Sunnyvale, California-based company said in a statement Tuesday. Shares in SpinCo will be distributed to existing Yahoo shareholders as a separate public company.