Alibaba Cash and Tax Plans Top Questions Facing Yahoo’s Mayer
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When Yahoo! Inc. releases quarterly earnings on Tuesday, the top question for investors will be the Web portal’s plans for its stake in Alibaba Group Holding Ltd. and how it can unload the holding without incurring a tax penalty.
With Starboard Value LP and other investors pressing for Chief Executive Officer Marissa Mayer to return cash to stakeholders, she will need to show Yahoo can do so without overpaying in taxes, as Mayer did when the company liquidated part of the Alibaba holding at the Chinese company’s September initial public offering. The CEO has promised an update on her plans when the Sunnyvale, California-based company reports quarterly earnings on Tuesday.