Deals
Yahoo Said to Scrap Alibaba Spinoff, Explore Web-Unit Deal
- Shift would be admission of defeat for CEO Marissa Mayer
- Investors voiced concerns spinoff might not be tax-free
Yahoo Said to Scrap Alibaba Stake Spinoff
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Yahoo! Inc. will scrap the long-planned spinoff of its stake in Alibaba Group Holding Ltd., according to a person with knowledge of the matter, under pressure from investors concerned about the tax risks of the deal.
The Web portal will instead explore a spinoff of its main Internet businesses, said the person, who asked not to be named because the decision hasn’t yet been made public. The shift came after Yahoo’s board convened last week to consider options for the company’s future, including whether to press ahead with the Alibaba divestiture after questions arose about whether the transaction would be tax-free.