Yahoo Creates Tax-Free Spinoff To Inherit Stake In China's Alibaba

SUNNYVALE (CBS SF)_ Yahoo CEO Marissa Meyer is spinning off the company's prized stake in China's Alibaba Group--a move that will avoid paying billions in future taxes.

A newly formed entity called SpinCo, will inherit ownership of Yahoo's 384-million Yahoo shares when the tax-free spin-off is completed toward the end of this year.

Tuesday's much-anticipated announcement about the management of Yahoo's 15 percent stake in Alibaba overshadowed Yahoo's results for the final three months of last year.

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