SAN FRANCISCO (CBS/AP) — Yahoo is moving forward with the spinoff of its sizable stake in China’s Alibaba Group, and announced a name for it: Aabaco.
Yahoo stockholders will get shares in the new entity, Aabaco Holdings Inc., which will hold nearly 384 million shares in Alibaba, according to documents filed Friday with regulators. That stake is currently worth about $32 billion.READ MORE: Santa Clara County Officials Unveil Plan To Hand Out Free COVID At-Home Antigen Tests; Here's How To Sign Up
Investors are enthusiastic about the plan, which Yahoo has touted as a tax-free transaction.
Federal authorities are reviewing their policy on such deals.READ MORE: 'Disturbing' Attack On Ducks In San Lorenzo Park Caught On Video; Arrest Made
CEO Marissa Mayer has said she doesn’t believe any policy change would affect the spinoff.
The filing says Yahoo won’t proceed without assurances the deal is tax-free for investors, but Aabaco could be liable if authorities ultimately determine that taxes are owed.MORE NEWS: Liam's List Jan. 21: 49ers Playoff Showdown, New Charlie Puth Song, Fog Fair At Fort Mason
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