"Yahoo executives promised shareholders that they would find a way to dispose of the rest of the Alibaba stake in a way that incurred a much lower tax bill. Their solution — a spinoff of the Alibaba stake and a Yahoo operating business — avoids $16 billion in corporate taxes that Yahoo would have owed if it had simply sold the stake, executives said.Yahoo to Spin Off Its Stake in Alibaba - NYTimes.com
Investors will receive shares in the spun-off company in proportion to their stakes in Yahoo, and will pay taxes on their capital gains when they sell those shares. But the plan will not give Yahoo a new pile of cash with which it could make big acquisitions."
Wednesday, January 28, 2015
Yahoo to Spin Off Its Stake in Alibaba - NYTimes.com
Innovative accounting, at least