Yahoo! Inc. (NASDAQ:YHOO) Responds To Share Decline, Claims Its Alibaba Stock Spin-Off Plans Still In Place

Yahoo! Inc. (NASDAQ:YHOO) released a statement to fight fears and claims that its decision to spin out the shares it holds in Alibaba Group Holding Ltd (NYSE:BABA) might be in trouble.

Yahoo maintained that the plans are still in place, and nothing has changed regarding the decision. At the beginning of the year, the company made the announcement that it was planning to dispose of its share ownership in the Chinese e-commerce giant, Alibaba. The plan was to hand over the share so it can instead own stake in a spin-out firm known as SpinCo.

The shares purchased from the new company will be handed over pro-rata to Yahoo shareholders. According to Yahoo, these steps will result in the transformation of SpinCo into a publicly listed company.

One of the latest news regarding the matter is a statement made by a U.S government representative from the Internal Revenue Service. The organization claimed that it was reviewing the current existing regulations regarding spinoff firms. He, however, did not reveal whether and how this might influence Yahoo’s procedures because the company’s plans had already been initiated.

Despite the uncertainties, Yahoo shares went down by 7.6% to settle at 40.98 before closing though they went up slightly before the market opened for trading. Analysts say that the results were the lowest that Yahoo has experienced since October last year. In a bid to recover from the drop, the company confirmed its plans to spin off its shares in the Chinese e-commerce company by the end of the year.

The company still maintains that the quote by the IRS representative did not link Yahoo especially. Yahoo further went on to add that the regulations do not affect ruling requests filed in the past.

Yahoo! Inc. (NASDAQ:YHOO) released a comment in response to the statement made by the IRS representative. It will be exciting to see how the response will influence the share performance.

For consideration of being featured on WallstreetPR, contact: Editor@Wallstreetpr.com

Please make sure to read and completely understand our disclaimer at https://www.wallstreetpr.com/disclaimer. FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. Any content posted on our website is for educational and informational purposes only and should NOT be construed as a securities-related offer or solicitation, or be relied upon as personalized investment advice. WallStreetPR strongly recommends you consult a licensed or registered professional before making any investment decision. Neither WallStreetPR.com nor any of its owners or employees is registered as a securities broker-dealer, broker, investment advisor (IA), or IA representative with the U.S. Securities and Exchange Commission, any state securities regulatory authority, or any self-regulatory organization. WallStreetPR often gets compensated for advertisement services that are disclosed on our disclaimer located at WallStreetPR.com/Disclaimer.

Published by Steve Hackney

Steve Hackney is a corporate finance professional with over 14 years of experience in cash management and investing. He earned a Bachelor of Science in Finance from Florida State University and holds a Certified Treasury Professional certification. Steve lives in Orlando, Florida with his family.