Yahoo! Inc. filed to spin off its shares in Alibaba Group Holding Ltd. into a company to be called Aabaco Holdings Inc., a move still set for the fourth quarter.
The new entity will be independently traded and hold about 15 percent of Alibaba ownership interest, or 384 million shares, Yahoo said in a statement Friday. The new company will include Yahoo’s small-business service.
Yahoo Chief Executive Officer Marissa Mayer, trying to drive a turnaround, has benefited from the stake in Alibaba, the largest e-commerce company in China. Yahoo announced in January that it planned to spin off its stake.
Following Friday’s announcement, shares of Sunnyvale, California-based Yahoo surged as much as 1.8 percent in extended New York trading after closing at $39.68.