In addition to releasing its (mixed) fourth quarter earnings report, Yahoo just announced its plan to spin off its stake in Alibaba into a new company, currently dubbed “SpinCo.”
The new company will own all of Yahoo’s 384 million remaining shares in Alibaba, valued at $40 billion. The spin off will be tax-free, which had been predicted and was one of the main concerns of shareholders — and as of 4:32pm Eastern, Yahoo shares were up more than 7 percent in after-hours trading.
“Throughout my tenure with the company, we have worked tirelessly on a tax-efficient alternative that would maximize the value of our Alibaba investment for our shareholders,” Yahoo CEO Marissa Mayer said in the spin off release. “A tax-free spin off accomplishes this and delivers value directly and exclusively to our shareholders.”
In an earnings call last year, Mayer (who’s been facing increasing pressure from activist…
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