Yahoo Calls Off Alibaba Sale, and Will Separate Operating Business

[engine]

After turmoil in the markets over Yahoo's lack of clarity, at last a statement which means the company will not sell the Alibaba stake, but will separate the operating businesses. It seems the board didn't want to go head to head with the authorities of the tax liabilities.

"We believe that the previously announced spin off would be tax free to Yahoo and its shareholders," said Maynard Webb, Chairman of Yahoo's Board of Directors. "However, in consideration of developments since the original spin off plan was announced and after significant deliberations, we are suspending work on the Aabaco spin off. Among other factors, we were concerned about the market's perception of tax risk, which would have impaired the value of Aabaco stock until resolved. 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. To achieve this, we will now focus our efforts on the reverse spin off plan."

"In addition to our efforts to increase value and diminish uncertainty for investors, the ultimate separation of our Alibaba stake will be important to our continued business transformation," said Marissa Mayer, CEO of Yahoo. "In 2016, we will tighten our focus and prioritize investments to drive profitability and long-term growth. A separation from our Alibaba stake, via the reverse spin, will provide more transparency into the value of Yahoo's business." Yahoo Calls Off Alibaba Sale, and Will Separate Operating Business [investor.yahoo.net]

[super70s]

It's apparently a complete trainwreck at Yahoo these days, I had let Yahoo Small Business host my site since 2001 but they really screwed up the transition to this "Aabaco" thing (after changing their minds about calling it "Luminate" a couple months earlier) and said I'd had enough.

When they first made you log on to the Aabaco site, they had this really obnoxious "pick out the waterfalls to prove you're not a bot" thing that I've always hated, then I couldn't even log on to the ftp for a week.

I wouldn't be surprised if they lost several hundred of their hosting accounts last month when this happened.

[FranticFish]

I had the same experience; I still had one YSB listing, but I have not migrated it into whatever they're calling their directory this week because the system was a nightmare.

[3zero]

Its actually the "potential" for tax liabilities from Alibaba sale that has caused a rethink. Yahoo as we know it is walking dead, its investments are worth far more than its operating business, therefore because of potential tax liabilities its operating business will be sold not its investments.