Yahoo to Spin Off Its Stake in Alibaba
Marissa Mayer, chief executive of Yahoo, said Tuesday that the Internet company would spin off its 15 percent stake in Alibaba, China’s leading e-commerce company, into a separate company, avoiding any taxes on the transaction.
The decision, which Wall Street has been waiting for since Ms. Mayer joined the company in 2012, cheered shareholders since they will directly reap all the remaining profit from Yahoo’s prescient investment, which cost virtually nothing a decade ago but is now worth about $39.5 billion.
The Alibaba stake alone now makes up nearly 85 percent of Yahoo’s market value.
The immediate reaction to the announcement was positive, with investors driving Yahoo’s stock up about 6 percent in after-hours trading after disclosure of the plan.
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http://www.nytimes.com/2015/01/28/technology/yahoo-earnings-alibaba-spinoff.html?emc=edit_na_20150127

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