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Yahoo!: Yahoo Provides Update On Planned Spin Off Of Remaining Stake In Alibaba Group

The following excerpt is from the company's SEC filing.

SUNNYVALE, Calif. December 9, 2015 Yahoo! Inc. (NASDAQ: YHOO) today announced that its Board of Directors, after careful review and consideration of how to best drive long-term value for shareholders, has unanimously decided to suspend work on the pending plan, announced in January of 2015, to spin off the companys remaining holdings in Alibaba Group Holding Limited (NYSE: BABA). The Board will now evaluate alternative transaction structures to separate the Alibaba stake, focusing specifically on a reverse of the previously announced spin transaction.

In the reverse spin off, Yahoos assets and liabil ities other than the Alibaba stake would be transferred to a newly formed company, the stock of which would be distributed pro rata to Yahoo shareholders resulting in two separate publicly-traded companies.

We believe that the previously announced spin off would be tax free to Yahoo and its shareholders, said Maynard Webb, Chairman of Yahoos Board of Directors. However, in consideration of developments since the original spin off plan was announced and after significant deliberations, we are suspending work on the Aabaco spin off. Among other factors, we were concerned about the markets perception of tax risk, which would have impaired the value of Aabaco stock until resolved. Informed by our intimate familiarity with Yahoos unique circumstances, the Board remains committed to accomplishing the significant business purposes and shareholder benefits that can be realized by separating the Alibaba stake from the rest of Yahoo. To achieve this, we will now focus our efforts on the reverse spin off plan.

In addition to our efforts to increase value and diminish uncertainty for investors, the ultimate separation of our Alibaba stake...