Yahoo Shares Tumble on Stalled Talks (YHOO)
Discussions among Yahoo! Inc. (NASDAQ: YHOO), Japan’s Softbank, China’s Alibaba Group Holding Ltd. over a possible sale of Yahoo’s 40% stake in the Chinese internet company have broken down. The two companies were trying to reach an agreement on how…
Discussions among Yahoo! Inc. (NASDAQ: YHOO), Japan’s Softbank, China’s Alibaba Group Holding Ltd. over a possible sale of Yahoo’s 40% stake in the Chinese internet company have broken down. The two companies were trying to reach an agreement on how Yahoo! might divest its ownership stake in Alibaba in a tax-efficient manner.
According to an exclusive report on the WSJ’s All Things Digital blog, Yahoo could end up paying $4 billion US taxes if it sells its stake in Alibaba, which is valued at $17 billion.
Yahoo’s shares are down more than -6%, at $15.09 in a 52-week range of $11.09-$18.84.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.