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Failure of Yahoo’s Alibaba Spinoff Would Have Messy Consequences
- chollida1 11y agoI think this a pretty important issue here as if the IRS does come after YHOOfor the tax liability from spinning out BABA then it won't be fun at all being a YHOO shareholder. How much pain might YHOO be in for? Well consider the stock has already gone from $50 at the start of the year to $27.60 now. it could be in for another halving in value. Now consider if you are an employee of YHOO here is your situation: - your options are underwater - the only asset you own that wall street likes was just sold off in the most expensive and disastrous way possible - your CEO has outlived her honeymoon phase so she'll have to do something to save her job, this usually means massive layoffs to show that you are getting costs under control - Silicon Valley is in a phase where anyone with a pulse can get a job. What do you do? Do you stay and stick it out with a company that could see their stock got to $10? Or do you start talking to the Facebook and Google recruiters who start calling?