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In response to
"LIR - cause it is interesting - why is Yahoo breaking off Alibaba? to shuttle the albatross? or to make more money? -- nm"
by
Pippy and her candelabra
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Because shareholders don't trust Yahoo and want their money now.
Posted by
spamlet
Sep 29 '15, 08:00
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For a long time Yahoo itself has been valued at zero or even a negative value (taking out cash and the value of the Alibaba stake). Since Yahoo will have to be worth *something* after the spinoff theoretically it is a win for shareholders if they do this.
Of course $7b in taxes to Yahoo and potentially another $4b in taxes for shareholders takes a big chunk out of that theory.
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