Date
15 December 2017
Yahoo Japan chairman Masayoshi Son (left) and Alibaba chairman Jack Ma announce a collaboration between the two firms in 2010. Photo: Bloomberg
Yahoo Japan chairman Masayoshi Son (left) and Alibaba chairman Jack Ma announce a collaboration between the two firms in 2010. Photo: Bloomberg

Yahoo to spin off remaining stake in Alibaba

Yahoo Inc. unveiled a plan to spin off tax-free its nearly US$40 billion worth of holdings in Alibaba Group Holding Ltd., The Wall Street Journal reported.

Yahoo’s Asian assets form the bulk of its US$47 billion market value.

After the spin-off, expected in the fourth quarter of this year, Yahoo will continue to operate its core business and retain its 35.5 percent interest in Yahoo Japan.

The new firm will own all of Yahoo’s remaining shares of Alibaba. 

Yahoo sold shares in Alibaba’s initial public offering in September but still owns 15 percent of the Chinese e-commerce giant.

The spin-off plan allows Yahoo to avoid paying billions of US dollars in taxes, which it would have to do had it decided to dispose of the shares directly.

Yahoo shares rose more than 10 percent in late trading.

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