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Yahoo will spin off its Web business

2015-12-10 03:08 by

 

After a week of meetings, Yahoo's Board of Directors has recently announced that it would do the exact opposite of what it had planned several months ago. Instead of trying to sell its Alibaba stake off, it will perform a "reverse spin" to move its core Internet business — into a new company. This will keep the original Yahoo as a holding company for Alibaba shares.

"In consideration of developments since the original spin off plan was announced and after significant deliberations, we are suspending work on the Aabaco [Yahoo's Alibaba assets] spin off," wrote Maynard Webb, chairman of Yahoo's board of directors. "Among other factors, we were concerned about the market's perception of tax risk, which would have impaired the value of Aabaco stock until resolved."

"With a large portion of our market capitalization driven by our Alibaba stake, a separation will provide greater transparency to ensure that Yahoo's business operations are accurately valued, especially as we continue to improve Yahoo's products and operations," said Yahoo CEO Marissa Mayer during a conference call Wednesday with analysts.

The "reverse spin" of the core business could save shareholders billions of dollars in taxes. However, it may take a year until it is approved by shareholders.

Read more -here-

 

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