Legal News

Yahoo May Attempt to Avoid Large Tax Bill
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

Yahoo Alibaba

Summary: In an effort to avoid a tax bill of over $10 billion, Yahoo may sell off the Internet services the company is best known for.

Yahoo CEO Marissa Mayer has been receiving a lot of pressure from New York hedge fund Starboard Value to sell their Internet services so they can avoid a large tax bill and put their efforts into the booming Alibaba Group. There is no guarantee this effort will pay off, as the IRS will not make any promises that they would qualify for the tax exemption.

  
What
Where


Yahoo currently has a 15 percent stake in Alibaba, an e-commerce company. The idea by Starboard is for Yahoo to sell their websites, ad services, data analytics, and mobile applications so they can go forward with a plan to spin off their Alibaba stake. The spinoff could protect them from capital-gains taxes on investments.

In response to Starboard’s idea, the Yahoo board has explored other options including wiping out over two-thirds of the gain on their Alibaba stake acquired for $1 billion ten years ago, which is now worth $33 billion. Starboard has threatened to retaliate against nine of the directors next year if they don’t follow their proposal.

If the board does decide to go along with Starboard’s proposal, Yahoo will be left as a shell company with some stake in Alibaba and Yahoo Japan. Bigger companies like AT&T may then be interested in acquiring the company, similar to Verizon’s acquisition of AOL earlier this year. Mayer has been leading Yahoo for over three years, but the company has yet to see any big profits.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




Source: http://www.nytimes.com/aponline/2015/12/02/business/ap-us-yahoo-tax-dodge.html

Photo: slashgear.com





 

Interesting Legal Sites You May Like


BCG FEATURED JOB

Locations:

Keyword:



Search Now

Mid-level Litigation Attorney with motions experience

USA-WA-Seattle

Seattle office of our client seeks mid-level litigation attorney with 3-5 years of experience, inclu...

Apply Now

Environmental /Land Use Attorney with 2-3 years of experience

USA-CA-San Francisco

San Francisco office of our client seeks environmental /land use attorney with 2-3 years of experien...

Apply Now

Litigation Attorney with 2-5 years of insurance defense experience

USA-FL-Jacksonville

Jacksonville office of our client seeks litigation attorney with 2-5 years of previous insurance def...

Apply Now

Tax Associate with Real Estate / Capital Markets Experience

USA-IL-Chicago

Chicago office is seeking a tax attorney with 3-5 years of experience. Significant experience in rea...

Apply Now

RELEVANT JOBS

LITIGATION ATTORNEY

USA-CA-Emeryville

Boutique East Bay litigation defense firm is seeking a junior to mid-level attorney. Candidates for ...

Apply now

Managing Director, Litigation Finance Investments

USA-FL-Tampa

Title                ...

Apply now

Contract Associate

USA-CA-Sausalito

Seeking lawyer with at least 2 yrs experience in complex real estate transactional matters, with wil...

Apply now

Senior Associate Attorney

USA-CA-Irvine

We are a boutique-sized law firm (6 attys) seeking a self-motivated litigation senior associate from...

Apply now

Most Popular

SEARCH IN ARCHIVE

To Top