Not for the first time, Alibaba(BABA) graces our pages with news of a cancelled spinoff. Back in 2015, it was Yahoo’s planned spinoff of Aabaco Holdings that was cancelled, due, in large part, to IRS opposition to the transaction being tax free. Aabaco would have been a vehicle to take Yahoo’s valuable Alibaba stake and move it into… Read More »
For the past month, Yahoo (YHOO) has been awash with uncertainty over saber rattling by the IRS that calls the tax-free nature of the spinoff of its Alibaba(BABA) stake into question. Last week, Marissa Mayer downplayed concerns. This week, Yahoo General Counsel Ron Bell tried to do the same. Yahoo! Inc. is working with tax officials to complete… Read More »
On May 19th, Yahoo’s (YHOO) stock plunged at the close after word leaked that the IRS was reviewing its rules regarding spinoffs. This was big news because Yahoo, after months of prodding by numerous activists, is in the process of spinning off its $30+b stake in Alibaba (BABA). A spinoff will help the company avoid a massive tax bill estimated… Read More »