Arab Today, arab today yahoo announces taxfree spinoff of alibaba stake
Last Updated : GMT 14:34:09
Arab Today, arab today
Arab Today, arab today

Split off valuable holdings from core operations

Yahoo announces tax-free spinoff of Alibaba stake

Arab Today, arab today

Arab Today, arab today Yahoo announces tax-free spinoff of Alibaba stake

Yahoo announced plans Tuesday for a tax-free spinoff
New York - Arab Today

Yahoo announced plans Tuesday for a tax-free spinoff of its stake in Chinese Internet giant Alibaba, splitting off the valuable holdings from its core operations.
The move aims to deliver more cash for shareholders than an outright sale of the $40-billion stake, avoiding a hefty tax bill, and to help Yahoo's efforts to refocus under chief executive Marissa Mayer.
Mayer told a conference call the deal "maximizes value for shareholders" and avoids a potential tax bill of up to $16 billion under a traditional sales of the stake.
She said the move is part of a broader effort to help Yahoo's "remixing" of  its activities around mobile Internet, video and other forms of online media.
The spinoff creates a new entity to hold Alibaba shares, in a move that responds to concerns of activist shareholders who want the struggling California group to extract value from the holdings.
Shares in Yahoo jumped 7.1 percent in after-hours trade as investors cheered the move.
Yahoo said its board had authorized the move to create an independent investment company called SpinCo to hold the Alibaba shares. SpinCo would be 100-percent owned by Yahoo shareholders.
Yahoo's current market value is $45 billion, most of which is in Alibaba shares. Yahoo bought a 40-percent stake in the Chinese online giant in 2005 for $1 billion.
"We have actively engaged experts in tax-efficient structures over the past two years and have considered a variety of alternatives," Yahoo chief finance officer Ken Goldman said in a statement.
Goldman said the plan is a "unique spinoff" that places the Alibaba stake in a registered investment company in a "clean transaction."
Yahoo will continue to operate its core business and hold its 35.5 percent stake in Yahoo Japan.
Goldman said Yahoo is "open minded about alternatives for value creation" of the stake in Yahoo Japan, whose value is estimated at $7 billion.
- Profits lower -
Yahoo said separately its profit in the fourth quarter fell 52 percent from a year ago to $166 million while revenue was essentially flat at $1.25 billion.
"I'm pleased to report that our performance in the fourth quarter and in 2014 continues to show stability in our core business," said  Mayer.
"Our mobile strategy and focus has transformed Yahoo and yielded significant results."
Revenue from users accessing Yahoo sites on mobile devices rose some 23 percent in the quarter to $254 million, highlighting the company's effort to connect with users on the go.
Yahoo also struck a deal to be the primary search engine for the Mozilla Firefox browser in North America, which should help efforts to compete against market leader Google in search and related advertising revenues.
Though the deal was implemented only late in the quarter, "we are already impressed with the volume of search Mozilla has brought," Mayer said.
"Our new partnership with Mozilla gives us reason to be optimistic that growth will continue."
The Alibaba spinoff will add to the $9.7 billion already returned to shareholders from Alibaba and bring the total amount to nearly $50 billion.
"This level of capital return is historic, especially for a company of our size," she said.
"The plan announced today vividly demonstrates our commitment to being good stewards of capital and increasing shareholder value."
Yahoo said the spinoff is expected to occur in the fourth quarter, following the end of a "lockup" agreement on the shares with Alibaba.
The deal also requires review by US tax authorities.
Source: AFP

 

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today yahoo announces taxfree spinoff of alibaba stake Arab Today, arab today yahoo announces taxfree spinoff of alibaba stake

 



Arab Today, arab today
Arab Today, arab today Fadi explains secrets of  Nancy Ajram's newlook

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook
Arab Today, arab today Messi visit will contribute in tourism

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Iran complying with nuclear deal

GMT 07:14 2017 Saturday ,25 February

Iran complying with nuclear deal
Arab Today, arab today Zainab al-Maliki reveals herTV presenter models

GMT 18:12 2017 Friday ,24 February

Zainab al-Maliki reveals herTV presenter models

GMT 10:57 2017 Thursday ,23 February

Chief executive out at Paramount Pictures

GMT 07:26 2017 Thursday ,23 February

A peek inside Qatar's 'gas capital of the world'

GMT 11:26 2017 Wednesday ,22 February

Dutch corporate takeover defences tough to breach

GMT 11:14 2017 Wednesday ,22 February

Lloyds Banking Group posts surging profits

GMT 10:01 2017 Tuesday ,21 February

Egypt pound rebounds from flotation slide

GMT 09:57 2017 Tuesday ,21 February

Greece agrees to bailout reforms compromise

GMT 09:55 2017 Monday ,20 February

Thailand 2016 growth up but below junta target
View News in Arabic - Business: أخبار الأعمال
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Actress Lobna Abdel Aziz proud of her career

GMT 06:08 2017 Thursday ,23 February

Actress Lobna Abdel Aziz proud of her career
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 10:20 2017 Thursday ,23 February

Brazil's top diplomat resigns

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday