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I don't think the Alibaba spinoff would be worth $40 billion because it comes with a sizeable tax bill which shareholders will have to pay when they sell their
by MarkMc 12y ago
I don't think the Alibaba spinoff would be worth $40 billion because it comes with a sizeable tax bill which shareholders will have to pay when they sell their shares.
- brianbreslin 12y agoWould they avoid the tax hit if its a stock swap? i.e. all stock deal for the acquisition? or buy them in cash in 2016, then the hit is capital gains (lower tax rate)? I'm asking/speculating
- tptacek 12y agoMatt Levine at Bloomberg (who is awesome) points out that Alibaba will simply buy the spinoff for stock, replacing spin-off shares with plain old Alibaba shares.
- mlrtime 12y agohere is the article: http://www.bloombergview.com/articles/2015-01-28/yahoo-would-rather-not-pay-taxes-on-its-alibaba-shares http://www.bloombergview.com/articles/2015-01-28/yahoo-would...