4 ms·

What's the difference aside from the tax liability? Either way you wind up with two companies. One with the Alibaba shares, and the other with everything else

What's the difference aside from the tax liability? Either way you wind up with two companies. One with the Alibaba shares, and the other with everything else.

jackgavigan 11y ago
There is no difference aside from the potential tax liability but the tax liability is potentially huge. We're talking over $9bn. Matt Levine wrote a good piece on this a week ago: http://www.bloombergview.com/articles/2015-12-02/yahoo-is-looking-for-a-new-way-around-alibaba-taxes http://www.bloombergview.com/articles/2015-12-02/yahoo-is-lo...
- ddlatham 11y ago
  Totally agree that any shift in the tax liability is significant. But people seem to be discussing many other consequences now: Does this mean the end of Yahoo? Is it being acquired? Are they shutting down Flickr or Tumblr? Why would this change make any difference to those questions?
  - jackgavigan 11y ago
    > Why would this change make any difference to those questions? I don't think it does. I think the difference is that Starboard suggested that Yahoo sell its core business - http://www.wsj.com/articles/starboard-urges-yahoo-to-drop-alibaba-spinoff-plan-1447905535 http://www.wsj.com/articles/starboard-urges-yahoo-to-drop-al... - and Verizon's CFO suggested that they might be interested in buying Yahoo Core if it was put up for sale - http://www.bloomberg.com/news/articles/2015-12-07/verizon-would-explore-yahoo-deal-if-it-made-sense-cfo-says http://www.bloomberg.com/news/articles/2015-12-07/verizon-wo...
    - ddlatham 11y ago
      Right, it sounds like you agree with me. But most of the rest of the comments on this article suggest this is a significantly meaningful change.
lmm 11y ago
The symbolism is pretty visceral. People knew intellectually that the AliBaba shares were worth much more than the core yahoo business, but this really pounds it home.

4 ms·

What's the difference aside from the tax liability? Either way you wind up with two companies. One with the Alibaba shares, and the other with everything else

by ddlatham 11y ago

What's the difference aside from the tax liability? Either way you wind up with two companies. One with the Alibaba shares, and the other with everything else.

jackgavigan 11y ago
There is no difference aside from the potential tax liability but the tax liability is potentially huge. We're talking over $9bn. Matt Levine wrote a good piece on this a week ago: http://www.bloombergview.com/articles/2015-12-02/yahoo-is-looking-for-a-new-way-around-alibaba-taxes http://www.bloombergview.com/articles/2015-12-02/yahoo-is-lo...
- ddlatham 11y ago
  Totally agree that any shift in the tax liability is significant. But people seem to be discussing many other consequences now: Does this mean the end of Yahoo? Is it being acquired? Are they shutting down Flickr or Tumblr? Why would this change make any difference to those questions?
  - jackgavigan 11y ago
    > Why would this change make any difference to those questions? I don't think it does. I think the difference is that Starboard suggested that Yahoo sell its core business - http://www.wsj.com/articles/starboard-urges-yahoo-to-drop-alibaba-spinoff-plan-1447905535 http://www.wsj.com/articles/starboard-urges-yahoo-to-drop-al... - and Verizon's CFO suggested that they might be interested in buying Yahoo Core if it was put up for sale - http://www.bloomberg.com/news/articles/2015-12-07/verizon-would-explore-yahoo-deal-if-it-made-sense-cfo-says http://www.bloomberg.com/news/articles/2015-12-07/verizon-wo...
    - ddlatham 11y ago
      Right, it sounds like you agree with me. But most of the rest of the comments on this article suggest this is a significantly meaningful change.
lmm 11y ago
The symbolism is pretty visceral. People knew intellectually that the AliBaba shares were worth much more than the core yahoo business, but this really pounds it home.