Date
29 May 2017
Marissa Mayer speaks during the 2015 Bloomberg Technology Conference in San Francisco on June 16. Yahoo’s spinoff of its Alibaba stake is proceeding as per plan, the CEO said. Photo: Bloomberg
Marissa Mayer speaks during the 2015 Bloomberg Technology Conference in San Francisco on June 16. Yahoo’s spinoff of its Alibaba stake is proceeding as per plan, the CEO said. Photo: Bloomberg

Yahoo chief says Alibaba stake spinoff proceeding as planned

Yahoo’s spinoff of its stake in Chinese e-commerce firm Alibaba Group is proceeding as planned, the US Internet giant’s chief executive said on Tuesday.

The spinoff, which will involve distribution of Alibaba shares to Yahoo shareholders, is unlikely to be affected by potential US regulatory changes, Marissa Mayer said, according to Bloomberg News.

Last month, an official at the US Internal Revenue Service said the agency is considering changes to rules concerning spinoffs.

Yahoo has said potential IRS changes to the tax-free treatment of spinoffs shouldn’t affect previously filed requests.

“We’re proceeding with our plan,” Mayer was quoted as saying in an interview at the Bloomberg Technology Conference in San Francisco.

“The changes don’t apply for previous requests. These proposed changes aren’t changing the applicable law, but just changing the processes… We feel like we should proceed with the transaction as we planned.”

The company has already lodged its plan and is still working toward undertaking the transaction in the fourth quarter, according to the report.

Yahoo’s Alibaba stake was valued at almost US$40 billion when the spinoff was announced.

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CG/RC

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