Yahoo changed its mind to to Spin off Alibaba
The Internet firm Yahoo confirmed today that it has “suspended” its initial plans to spin off its stake in the electronic giant Alibaba, which had announced last January. The decision was announced in an official statement by top executives of Yahoo after a meeting of several days to discuss the future of the company, which is the pioneers of the internet industry in the United States.
The governing body now will evaluate other alternatives on the Yahoo links with Alibaba, “focusing specifically on a March back into the separation that was previously announced”, said the official statement.
The company also announced that other non-Alibaba assets will be transferred to a new company and its shares will be distributed among the shareholders of Yahoo, “resulting in two separate which will be listed separately”. The press release mentions “fiscal risks” involving the operation to get rid of Alibaba, since initially Yahoo thought that there would be a big impact.
The decision confirmed today after the Starboard Value investment firm asks Yahoo to sell its core business of the internet and to halt plans to spin off Alibaba. Starboard had supported the spin off of Alibaba, valued at about 30,000 million dollars, until the service of collection of taxes (IRS) refused in September to certify that the transaction would be tax-free.
If the U.S. tax agency finally ruled that the transaction is taxable. Yahoo shareholders could be forced to pay some 12,000 million dollars in taxes.