Yahoo Kills Alibaba Spinoff, Will Spin Off Itself Instead
Yahoo officially announced on Wednesday morning that it has suspended its prior plan to spin off its large stake in Chinese ecommerce giant Alibaba due to “tax risk,” reports Brian Solomon of Forbes.
His report says the company will explore a spin off of Yahoo assets and liabilities other than the Alibaba stake, which would then trade as two separate stocks.
The original plan’s demise was hastened by activist investor Starboard Value, which urged Yahoo to sell its core business – which includes popular sites Yahoo News, Yahoo Mail, and social network Tumblr, according to the Forbes report.
