The internet company has decided to not sell its stakes in Alibaba as of now. It will instead sell its core business and stakes in Yahoo Japan
According to the New York Times, it is believed that Yahoo Inc. has finally decided to give up on its spinning off the Alibaba stakes plan. The company stated that it will abandon any and all plans to sell of massive $32 billion stakes in the Chinese tech company, Alibaba Group Holding. This news came from a few sources as well that were close to this matter and were involved in company’s meetings and discussions. Instead of this, the company will move its attention towards plan B which it was previously trying to avoid.
The only reason due to which Yahoo has not yet sold Alibaba stakes is because of the heavy taxes that it will have to keep on paying over the years if it plans to go for a spin off. For a very long time, it was exploring alternative opportunities in order to get rid of Alibaba stakes without paying taxes which failed miserably. Analysts suggested that the internet company must keep stakes in Alibaba Group and sell its core business instead if it wishes to survive in the market.
Yahoo’s plan B, which is to sell its core business, will make Alibaba stakes as its only primary asset then. People familiar to the matter are reporting that Yahoo might spin off its stakes in Yahoo Japan as well. The final verdict is expected to be announced in this week.
As New York Times report, “Ms. Mayer had planned to spin off Yahoo’s 15 percent stake in Alibaba, bundled with a small-business services unit, into a new company called Aabaco. She then planned to focus her attention on the company’s core business, which is the selling of advertising that gets shown to the roughly one billion users of its apps and websites.”
Alibaba was said to be the first and most reliable option to buy out Yahoo whenever the company plans to make itself available for purchase. But the e-commerce giant has ruled out such move immediately. Both, the activist investor Starboard Value and Yahoo itself, have declined to come out and comment over this matter so far. The next big name in the line is Verizon Communications which itself announced that it might be interested if any suitable offer comes up.
Verizon stated yesterday that it would surely acquire the internet company if the deal would made sense.
At this moment, all eyes are on Yahoo and it board of directors who will be announcing a very major news soon.
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