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Could someone explain the tax situation to me? If putting the Alibaba holdings into a separate company would incur tax, why can't they just put everything else
by steve19 11y ago
Could someone explain the tax situation to me?
If putting the Alibaba holdings into a separate company would incur tax, why can't they just put everything else into a separate company, called say "Yahoo Media", and leave YHOO with just the Alibaba ownership?
- swang 11y agoIsn't that what they're trying to do? Spin off all of Yahoo's current business into a new company, leaving current Yahoo with just the shares of Alibaba.
- harryh 11y agoAs usual, Matt Levine is excellent at explaining these sorts of things: 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...
- georgeott 11y agoI don't get it. Why shouldn't Yahoo pay the taxes? They invested in Alibaba, and have made HUGE gains, and if they want to realize those gains, they need to pay the taxes.
- phamilton 11y agoThe shareholders of YHOO will pay taxes regardless. If YHOO wants to spend the money from Alibaba, it will (and has already done so) pay taxes. The question is whether YHOO should pay taxes before returning the gains to the shareholders, who will then pay taxes.