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Charted: The value of Yahoo’s Alibaba stake since announcing its spinoff plans

In this Feb. 19, 2015 photo, Yahoo President and CEO Marissa Mayer delivers the keynote address at the first-ever Yahoo Mobile Developer's Conference, in San Francisco. Mayer was the highest paid female CEO in 2014, according to a study carried out by executive compensation data firm Equilar and The Associated Press. (AP Photo/Eric Risberg)
AP Photo/Eric Risberg
This is what I get for waiting.
By Alice Truong
Published Last updated This article is more than 2 years old.

Yahoo is set to report its earnings today (Oct. 20) after US markets close, and investors are hungry for more details on the progress of its Alibaba stake spinoff.

In September, the Sunnyvale, California, company was dealt a setback when the US Internal Revenue Service declined to issue a private-letter ruling on whether a proposed restructuring would allow Yahoo to offload its 384 million shares of Alibaba without incurring any taxes. But that hasn’t deterred Yahoo. In a filing with the US Securities and Exchange Commission, Yahoo said it would continue with the spinoff while hoping to avoid a multibillion-dollar tax bill.

Of course, when the company first described its tax-free spinoff plans in January, the value of its stake in the Chinese e-commerce giant was worth quite a bit more. At the start of the year, Yahoo’s Alibaba shares were worth about $40 billion, but they’ve declined 30% year to date to $28 billion, thanks largely to China’s financial crisis.

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