From Y To AA – Meet Aabaco Holdings, Yahoo’s Spinco

Following in the time honored tradition of Yellow Pages locksmiths, Yahoo(YHOO) has opted to name its upcoming spinoff Aabaco Holdings. Perhaps if they stick enough A’s in the name, they can get tax free status for the spin.  Though no uplifting corporate message was given for the name, which presumably rhymes with tobacco, it appears to be a variation of Alibaba(BABA), a 15% stake in which is the new spin’s primary asset.  The spin, which will be structured as a registered investment company, will also own Yahoo Small Business. Aabaco’s initial SEC filing can be found here.

The company hopes to complete the spinoff in Q4 of 2015. It is worth noting that one of the conditions the transaction is subject to is

Yahoo shall have received a favorable private letter ruling from the IRS regarding certain U.S. federal income tax aspects of the Spin-Off (the “IRS Ruling”), which ruling shall remain in full force and effect, and shall not have been modified or amended in any respect adversely affecting the U.S. federal income tax treatment of the Spin-Off.

Given the uncertainty around this, we may see further modifications in the coming months.

Disclosure: The author holds shares of Yahoo