Yahoo to spin off remaining Alibaba stake

yahoo-and-alibaba-alipay_512x288

Yahoo   Inc. unveiled plans for a tax-free spinoff of its remaining stake in Chinese e-commerce giant Alibaba Group.

Investors have been eager to hear Yahoo’s plans to extract value from its Asian assets, which represent the vast majority of its market value, while avoiding a tax bill of billions of dollars.

The stock jumped more than 8 percent after the announcement.

Yahoo’s remaining 384 million shares of Alibaba, valued at $40 billion, will be wrapped into a newly formed independent registered investment company, SpinCo.

The spinoff plans came as the Internet company also reported declines in fourth-quarter earnings and revenue.

Send this to friend