Yahoo spins off Alibaba stake into Aabaco Holdings
Yahoo has filed to create a new company named Aabaco Holdings, which will be a spinoff made through its stake in Chinese e-commerce giant Alibaba.
Aabaco Holdings, originally announced in January, is set to begin operations during the final months of the year.
The new company will combine a 15 per cent ownership by Alibaba and a smaller division of Yahoo which will target small businesses, it has been reported.
The creation of the new business has taken place in order that shareholders would avoid tax, however unforeseen changes in tax regulations have threatened the plan.
At the time of writing, Yahoo had still to name a leader for the new business.
Yahoo originally invested in Alibaba in 2005, spending $1bn on a 40 per cent stake in the process. It continues to hold a 15 per cent stake.