Because it would be taxed at 40% vs the spin off which would mean absolutely no ...

jackgavigan · on Jan 27, 2015

Do you have a source where I can read about the tax rules that apply?

esturk · on Jan 28, 2015

>http://www.bloombergview.com/articles/2015-01-28/yahoo-would...

This article is helpful in understanding this spinoff. Namely it explains some pretty interesting requirements for this spin-off to happen. The company have to have a function (however lame like Halloween costume rental), and that there can't be any pre-arrangement for Alibaba to buy back the stock before the spin-off, etc.

jackgavigan · on Jan 28, 2015

Good article. Thanks for the pointer.

charlesdm · on Jan 27, 2015

Stock swaps and splits are generally tax exempt in most jurisdictions.