Yahoo And Alibaba: The Anatomy Of A $40B Tax Dodge
Yahoo announced plans to avoid paying taxes on its $40 billion stake in Alibaba by spinning off shares into its own company, SpinCo.By Jake Godin | January 28, 2015
Sure, Apple may have hogged some of the limelight during Tuesday’s earnings announcements, but Yahoo had its own big news to announce — a $40 billion spin-off.
"Today, I am happy and proud to announce that management has recommended and the Yahoo board has authorized a plan to pursue a tax-free spin off of 100 percent of the company’s remaining holdings in Alibaba," said Yahoo President and CEO Marissa Mayer in an earnings call.
By spinning its 15 percent stake in Alibaba into a new company, Yahoo can avoid having to foot a $16 billion corporate tax bill. And that makes for some very happy shareholders.