Those hoping for the IRS to provide clear guidance on spinoff related tax issues can keep holding their breath because it’s not coming anytime soon, at least according to Robert Wellen, associate chief counsel of the U.S. tax agency. According to Mr. Wellen, these types of projects take a lot of time to complete, but on the plus… Read More »
Yahoo (YHOO) had a tough year in 2015. The core business continued declining, key employees fled and its plans to deliver shareholder value by spinning off its Alibaba (BABA) stake into a standalone company was effectively derailed by the IRS. Unfortunately for the company and its beleaguered CEO Marissa Meyer, the start of 2016 isn’t looking much better… Read More »
Congress is working hard trying to pass a comprehensive spending bill and a tax package extending numerous tax breaks. According to the WSJ, buried in these proposals is a bid to end companies’ ability to spinoff property into REITs: The bill from Rep. Kevin Brady (R., Texas), the chairman of the House Ways and Means Committee, would prevent… Read More »
For the past month, Yahoo (YHOO) has been awash with uncertainty over saber rattling by the IRS that calls the tax-free nature of the spinoff of its Alibaba(BABA) stake into question. Last week, Marissa Mayer downplayed concerns. This week, Yahoo General Counsel Ron Bell tried to do the same. Yahoo! Inc. is working with tax officials to complete… Read More »
A few short hits for the Friday before Memorial Day – A very minor footnote to the abandoned Comcast (CMCSA)/Time Warner Cable (TWC) megadeal is the cancellation of the GreatLand Connections spinoff. The spin would have shed millions of customers in select markets and was part of the two companies’ strategy to win regulatory approval. I think they… Read More »
After months of sustained pressure, Yahoo (YHOO) finally unveiled plans to spinoff its stake in Alibaba (BABA) last week during its earnings call. A spinoff was chosen for its tax efficiency and in order to accomplish that goal, the company said that a small operating unit would need to be included as part of the transaction. At the time,… Read More »