Yahoo! Postponed spin-off plan of Alibaba stock

ByChristian Barmala

Internet-related service company in the USAYahoo!Is China's largest EC site "AlibabaIt holds the stock of. Yahoo! Will bring this Alibaba stock to a separate companySpin offWe announced the plan to do it in early 2015, but it was officially announced that this plan was postponed.

Corporate Information - Yahoo - Press Center
https://info.yahoo.com/press-center/article/yahoo-provides-planned-spin-off-120000730.html


Yahoo! Announced the postponement of "Alibaba's spin-off plan" announced in January 2015 after the Board of Directors' decision and repeated investigation. Yahoo! It is said that the stock of Alibaba owned by the company is equivalent to 30 billion dollars (about 3.6 trillion yen). Yahoo! Announced that instead of Alibaba's spin-off, we will consider another structure to separate shares and web business. By canceling Alibaba 's spin - off, Yahoo! The assets and liabilities other than the Alibaba shares owned will be transferred to another new company and the stock of the new company will be Yahoo! To shareholders in accordance with their respective ownership percentage.

Yahoo! Mr. Maynard Webb, who is chairman of the Board of Directors, said, "As a result of the original spin-off plan announced and repeated many deliberations, we decided to put Alibaba's spin-off plan on hold. Of course There is also a possibility that there is a possibility of damaging the value of Alibaba shares (uncertain whether the spin-off plan is subject to taxation) In addition, the Committee will continue to work with Alibaba shares We will work hard to separate Yahoo! from Yahoo!, "he explains why he was postponed.

ByYahoo

In addition,Marissa Mayer"Commenting on further efforts to increase our value, reduce uncertainty to investors and ultimately separate Alibaba stocks is important for our future business form," CEO commented.

Yahoo! Was abandoning Alibaba's spin-off as to whether "Alibaba shares will be subject to taxation" during spin-offI could not get a response from the US Internal Revenue ServiceFor. In other words, what it is saying is explained in the following site in an easy-to-understand manner.

Yahoo Board of Directors abandoned Alibaba's spin-off to consider separating Yahoo! Website instead - Market Hack


Reason for spin-off

Yahoo has been devising measures from last year to make the value of the company's assets revealed. And we dropped in Alibaba stock owned by Yahoo into another company in a form like ETF, so we listed it on the stock market, so we tried to realize a spin-off that does not involve capital gains tax.

Abandoned reason

However, I could not receive a letter from the US Internal Revenue Service saying "I do not have any problem".

For this reason, the spin-off abaco has an uncertainty of being unaware of when it is impossible.

Then Abaco (*) is multiplied by the risk that it will always be traded on discount from Alibaba stock.

If such a discount occurs and it is impossible to make all inclusive values ​​clear, it will become meaningless to keep sticking to this scheme itself.

* Companies that were planned to spin off Alibaba shares

In addition to plans to separate Alibaba shares, Yahoo! The company is also planning to spin off the body of the company. However, in that case it is necessary to clear the consent of third parties, audit of financial statements, approval of shareholders, application to the Securities and Exchange Commission, etc. Yahoo! It is said that it will proceed quickly, but it seems that it will take more than one year to clear complex processing.

In addition, in October 2015CNBCBut"Yahoo! There is no value in the core business"Yahoo! Struggling in the Online Advertising Market! Although it was criticizing criticism, Verizon which is a major communication carrier in America is Yahoo! It shows interest in Internet business ofNews reportThere is also.