yahoo announces taxfree spinoff of alibaba stake
Last Updated : GMT 23:05:12
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

 

arabstoday
arabstoday

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*

yahoo announces taxfree spinoff of alibaba stake yahoo announces taxfree spinoff of alibaba stake

 



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*

yahoo announces taxfree spinoff of alibaba stake yahoo announces taxfree spinoff of alibaba stake

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Visit Jamaica for more than just sun

GMT 09:45 2017 Tuesday ,21 November

Visit Jamaica for more than just sun
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today UN warns of conflict in Gaza

GMT 08:39 2017 Tuesday ,21 November

UN warns of conflict in Gaza
Arab Today, arab today Missouri problem mirrors woes

GMT 06:46 2017 Tuesday ,21 November

Missouri problem mirrors woes
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today VW says will invest over 34bn euros

GMT 07:19 2017 Tuesday ,21 November

VW says will invest over 34bn euros
Arab Today, arab today Driverless, electric future just round

GMT 02:45 2017 Monday ,20 November

Driverless, electric future just round
Arab Today, arab today Fedra happy for “Between Two Worlds” success

GMT 09:23 2017 Saturday ,18 November

Fedra happy for “Between Two Worlds” success
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 12:15 2017 Friday ,17 November

Mona Abdel Ghany increased artistic activities

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 00:54 2017 Monday ,20 November

Mideast in danger as London explores

GMT 03:12 2017 Saturday ,18 November

Prince's vision spurs new Cornwall village

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
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