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Yahoo has formally notified US regulators that it is spinning off its stake in Chinese e-commerce giant Alibaba to an independent new company called Aabaco Holdings.Aabaco will wind up owning approximately 384 million shares of Alibaba Group, representing an interest of about 15%, according to a filing with the US Securities and Exchange Commission.
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Basically, Yahoo is tossing its Alibaba stock and a minor part of its operations into a new corporate entity. The spinoff will be a public company called Aabaco Holdings, and it will own 384 million shares of Alibaba, which is about 15 percent of the total. It will also own “a newly formed entity which will own Yahoo Small Business.” (That latter clause matters for spinoff reasons.)
At current market prices, the equity in question is worth more than $32 billion. The scale of the transaction is therefore anything but minor. The excision of Alibaba equity from Yahoo will unmoor the American company from the growing profits of the Chinese firm. In the immediate aftermath of the news, which was broadly anticipated, Yahoo’s stock price is up over a point in after-hours trading. -
Yahoo has officially filed with the SEC to spin off its remaining shares of Alibaba Group into a publicly traded company called Aabaco.Comment
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