Yahoo on Wednesday announced that its board of directors decided to suspend plans to spin off its Alibaba holdings and instead will undertake a reverse spinoff, transferring its other assets and liabilities to a newly formed company. The stock of the newly formed company will be distributed pro rata to Yahoo shareholders, resulting in two separate publicly traded companies. Concern about the market’s perception of tax risk is one of the factors that led to the suspension of the planned Alibaba share selloff, said Yahoo Chairman Maynard Webb.
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Yahoo Spins in Reverse
Posted by: Richard Adhikari December 9, 2015 01:16 PMYahoo on Wednesday announced that its board of directors decided to suspend plans to spin off its Alibaba holdings and instead will undertake a reverse spinoff, transferring its other assets and liabilities to a newly formed company. The stock of the newly formed company will be distributed pro rata to Yahoo shareholders, resulting in two separate publicly traded companies. Concern about the market’s perception of tax risk is one of the factors that led to the suspension of the planned Alibaba share selloff, said Yahoo Chairman Maynard Webb.