Yahoo is pulling the trigger on its planned spin-off of Alibaba stock
REUTERS/Kevin Lamarque
The new company, called Aabaco Holdings, will own approximately 384 million shares of Alibaba Group, and Yahoo will give all its shareholders a stake of the investment company.
At Alibaba's current market price, Aabaco's stake is worth about $3.2 billion.
Aabaco will also own a newly formed entity called Yahoo Small Business.
Yahoo's initial rationale for the spinoff, which will occur in the fourth quarter of 2015, was to maximize its return of capital to shareholders and minimize taxes on the sale.
In May, Yahoo stock tanked when Bloomberg reported that the IRS was changing its policy on tax-free spinoffs. However, Yahoo said that the changes wouldn't affect its plan, because it had already filed a request.
- 2 states where home prices are falling because there are too many houses and not enough buyers
- US buys 81 Soviet-era combat aircraft from Russia's ally costing on average less than $20,000 each, report says
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- 9 health benefits of drinking sugarcane juice in summer
- 10 benefits of incorporating almond oil into your daily diet
- From heart health to detoxification: 10 reasons to eat beetroot
- Why did a NASA spacecraft suddenly start talking gibberish after more than 45 years of operation? What fixed it?
- ICICI Bank shares climb nearly 5% after Q4 earnings; mcap soars by ₹36,555.4 crore