$40 Billion Alibaba Spin Off from Yahoo

Yahoo, Inc. decided to spin off its stake in Alibaba Group Holding, Ltd. on Tuesday, January 27. 2015. Yahoo plans to create two companies with the spin off—SpinCo and Yahoo. SpinOff will operate as an investment company, and its share will be distributed to current Yahoo stockholders. Making the change in this way will avoid significant tax liabilities. The spin-off is expected to take place in September.
With this spin-off, it is possible that Yahoo would be more vulnerable to potential buyers. Alibaba itself may also be interested in acquiring SpinCo, which would essentially allow it to buy back its own shares. Yahoo has also been in talks with other companies for potential partnerships, such as Twitter, Inc.
These complicated spin-offs and business deals are definitely an area for an experienced business law attorney. However, any business change warrants at least a discussion with a business law attorney.Business litigation specialists step in when something in the deal went wrong or the buyer, seller, or investors are unhappy with the deal.
For a company like Yahoo, if something were to go wrong in any business deal, it would be extremely important to cut down media exposure as much as possible. It is fairly well-known that the company has been struggling lately (although the past few years have been better), and any negative attention would also leave the company vulnerable for a buyout.
At the first sign of potential business litigation, speak to a business litigation specialist. Call The [nap_names id=”FIRM-NAME-1″] at 888-909-9430 so we can address your concerns as soon as possible.
Sources: https://www.law360.com/articles/615417/yahoo-to-spin-off-rest-of-alibaba-stake-to-new-company