Yahoo announced today that it has abandoned a plan to spin off its $31 billion stake in Alibaba, a popular Chinese e-commerce company, and would instead spin off all of its other assets into a new company. The move is called a reverse spinoff.
The company said in a statement that concerns over a massive tax liability connected to an Alibaba spinoff forced them to nix that idea.
“Informed by our intimate familiarity with Yahoo’s unique circumstances, the board remains committed to accomplishing the significant business purposes and shareholder benefits that can be realized by separating the Alibaba stake from the rest of Yahoo,” said Maynard Webb, chairman of Yahoo’s board of directors. “To achieve this, we will now focus our efforts on the reverse spin off plan.”
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