With Alibaba SpinOff In Tailspin, What Are The Possibilities For Yahoo?

With the Alibaba ADR listing in Q3 last year, these shares became subject to a one-year lock-up agreement that runs until September 21, 2015. If these shares were to be sold or transferred through ordinary means, the proceeds will be subject to a tax of approximately 35%. This will translate into a tax liability of approximately $8.5 billion or roughly $8 per share of Yahoo. Earlier in the year, the Yahoo board authorized a plan to pursue a tax-free spin-off of 100% of the company's remaining ho...