Yahoo Files To Spin Off Its Alibaba Stake As “Aabaco Holdings”

TechCrunch

Yahoo is moving forward with plans to spin off its Alibaba assets, as outlined in a new filing with the Securities and Exchange Commission.

Basically, Yahoo is tossing its Alibaba stock and a minor part of its operations into a new corporate entity. The spinoff will be a public company called Aabaco Holdings, and it will own 384 million shares of Alibaba, which is about 15 percent of the total. It will also own “a newly formed entity which will own Yahoo Small Business.” (That latter clause matters for spinoff reasons.)

At current market prices, the equity in question is worth more than $32 billion. The scale of the transaction is therefore anything but minor. The excision of Alibaba equity from Yahoo will unmoor the American company from the growing profits of the Chinese firm. In the immediate aftermath of the news, which was broadly anticipated, Yahoo’s stock price…

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