Wanna Know Why Yahoo’s Stock is On The Move? We Have The Inside Story!
Watch the stock news today. Yahoo is going to be the big story of the day. Multiple sources are saying Yahoo will announce today that it will not move forward with a spinoff of its stake in Alibaba, and instead examine a deal involving its core business. The stake in Alibaba is worth a reported 30 BILLION Dollars, so this is as big a play as Yahoo can make that will affect its stock.
The move comes amid uncertainty over whether the spinoff of its 384 million-share stake would be taxed, and would reduce the risk of a significant tax payment for a transaction meant to create value. The IRS told Yahoo earlier this year that it would not rule on whether the company could avoid a tax hit when putting its stake in a separate entity, which it planned to name Aabaco.
Activist investor Starboard Value had called for Yahoo to abandon its Alibaba spinoff and seek a sale of its core business. Rumors surrounded Yahoo as its board weighed options for the business in meetings last week.