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Yahoo! shelves plans to spin off stake in Alibaba

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By Euronews
Yahoo! shelves plans to spin off stake in Alibaba

Yahoo! says it has shelved plans to spin off its stake in Chinese e-commerce giant Alibaba, for tax reasons. Instead it intends to create a separate company to hold the rest of its assets.

The plan adds another layer of uncertainty to Chief Executive Marissa Mayer’s efforts to revive the struggling company.

Yahoo! had intended to sell off its Alibaba stake, worth more than $30 billion (27.3 billion euros), by January.

It believed the move would have been tax-free, but investors were worried that it could cost shareholders billions in taxes, in the absence of assurances from the US tax authorities.

Yahoo! originally bought 40 percent of Alibaba in 2005 for $1 billion (900 million euros) and has seen its value multiply thirty-fold.

Some analysts believe the announcement could make it easier for Yahoo! now to sell its internet business.