Showing posts with label Aabaco. Show all posts
Showing posts with label Aabaco. Show all posts

2015-12-09

Yahoo $YHOO Update: Reverse Spin Off Planned, Webcast Replay

Yahoo Update on Planned Spin-Off
Yahoo Update on Planned Spin-Off 
At a Yahoo! Conference call, Wednesday, December 09, 2015, 6:00 am PST, the company provided an update on the "planned spin-off" following issuance of a statement:

Yahoo [$YHOO] Provides Update on Planned Spin Off of Remaining Stake in Alibaba Group [$BABA]:

"Yahoo! Inc. (NASDAQ: YHOO) today announced that its Board of Directors, after careful review and consideration of how to best drive long-term value for shareholders, has unanimously decided to suspend work on the pending plan, announced in January of 2015, to spin off the company's remaining holdings in Alibaba Group Holding Limited (NYSE: BABA). The Board will now evaluate alternative transaction structures to separate the Alibaba stake, focusing specifically on a reverse of the previously announced spin transaction.

"In the reverse spin off, Yahoo's assets and liabilities other than the Alibaba stake would be transferred to a newly formed company, the stock of which would be distributed pro rata to Yahoo shareholders resulting in two separate publicly-traded companies.

"We believe that the previously announced spin off would be tax free to Yahoo and its shareholders," said Maynard Webb, Chairman of Yahoo's Board of Directors. "However, in consideration of developments since the original spin off plan was announced and after significant deliberations, we are suspending work on the Aabaco spin off. Among other factors, we were concerned about the market's perception of tax risk, which would have impaired the value of Aabaco stock until resolved. Informed by our intimate familiarity with Yahoo's unique circumstances, the Board remains committed to accomplishing the significant business purposes and shareholder benefits that can be realized by separating the Alibaba stake from the rest of Yahoo. To achieve this, we will now focus our efforts on the reverse spin off plan."

 "In addition to our efforts to increase value and diminish uncertainty for investors, the ultimate separation of our Alibaba stake will be important to our continued business transformation," said Marissa Mayer, CEO of Yahoo. "In 2016, we will tighten our focus and prioritize investments to drive profitability and long-term growth. A separation from our Alibaba stake, via the reverse spin, will provide more transparency into the value of Yahoo's business."

"The reverse spin off is expected to require, among other things, third party consents, preparation of audited financial statements, shareholder approval, and SEC filings and clearance, including under the Investment Company Act of 1940. While the company intends to move expeditiously to complete the transaction, it is advised that complex transactions of this kind can take a year or more to conclude."

 Conference Call - Webcast Replay

Yahoo held a conference call at 9:00 a.m. Eastern Time today to discuss this announcement. A live webcast of the conference call was available through the company's Investor Relations website at https://investor.yahoo.net/events.cfm. According to Yahoo: "an archive of the webcast will be accessible for 90 days through the same link."

 After the conference call, in early trading today, both Yahoo (NASDAQ: YHOO) and Alibaba (NYSE: BABA) shares were up. In an unrelated SEC filing today, it was disclosed that on December 4, 2015, Max Levchin notified Yahoo! Inc. (“Yahoo”) that he was resigning from Yahoo’s Board of Directors effective immediately, due to "his other professional commitments and demands on his time, and not due to any disagreement with Yahoo on any matter related to Yahoo’s operations, policies or practices." The size of the board will be eight directors going forward. SEC filings of Yahoo are here.

See also on Domain Mondo: Yahoo Will NOT Spinoff $BABA, $YHOO Core Business Spinoff Possible




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2015-10-20

Yahoo! Inc., YHOO, Q3 2015 Earnings Call LIVE Replay, Oct 20 (video)


Yahoo! Inc., YHOO, Earnings Call LIVE Replay Oct 20, 2015 (video above)

Can Yahoo Make It In Gambling? - Yahoo! Inc. (NASDAQ:YHOO) | Seeking Alpha: "Yahoo (NASDAQ:YHOO) reports earnings Tuesday and the expectations are very modest - $1.26 billion in revenue and 16 cents of earnings per share."

UPDATE: Q3 2015 a "miss"--$1.2B rev, 15 cents earnings per share--
Screenshot from YHOO Q3 2015 Earnings Release
Screenshot from YHOO Q3 2015 Earnings Release
Third Quarter 2015, October 20, 2015
"Our Q3 results were largely within our forecasted expectations -- our GAAP revenue grew 7% year-over-year and our Mavens revenue grew 43%. As we move into 2016, we will work to narrow our strategy, focusing on fewer products with higher quality to achieve improved growth and profitability," said Marissa Mayer, CEO of Yahoo. "In addition to sharpening focus within core business growth, our top priority is the planned spinoff of Aabaco Holdings. This is an important moment for the Company, and we continue to strive to complete the spin as quickly as we can."
Stock exchange and symbol: NASDAQ: YHOO (stock down at close and after hours)

Yahoo - Quarterly Earnings

Yahoo Investor Relations



Principal domain name: yahoo.com

Yahoo Inc. (Yahoo!) is an American multinational technology company headquartered in Sunnyvale, California, globally known for its Web portal, search engine Yahoo! Search, and related services, including Yahoo! Directory, Yahoo! Mail, Yahoo! News, Yahoo! Finance, Yahoo! Groups, Yahoo! Answers, advertising, online mapping, video sharing, fantasy sports ..." (source: Wikipedia)

See other recent posts about Yahoo! also on Domain Mondo: 



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2015-09-29

Yahoo Plans Spin-off Of Alibaba Shares To Aabaco Holdings In 2015

One year stock chart of Alibaba Group shares (NYSE: BABA)
Above: One year stock chart of Alibaba Group shares (NYSE: BABA) (source: google.com)
 SEC Filing: Form 8-K (July 17, 2015) "... Under the spin-off plan announced on January 27, 2015, Yahoo plans to distribute all of the outstanding shares of Aabaco Holdings pro rata to its shareholders. Immediately after the spin-off, Aabaco Holdings will own approximately 384 million shares of Alibaba Group, representing an ownership interest of approximately 15% in Alibaba Group, and a 100% ownership interest in a newly formed entity which will own Yahoo Small Business..."
The spin-off of Yahoo's shares in Alibaba ($BABA) now planned to be completed in 2015:

"On September 8, 2015, Yahoo! Inc. (“Yahoo” or the “Company”) filed a Current Report on Form 8-K (the “September 8 Form 8-K”) disclosing, among other things, that the Internal Revenue Service (“IRS”) had notified Yahoo’s counsel that it had determined, in the exercise of its discretion and without ruling adversely, not to grant Yahoo’s request for a private letter ruling regarding certain aspects of its previously announced plan for a spin-off to Yahoo’s stockholders of all of the stock of Aabaco Holdings, Inc. (“Aabaco”), a newly formed independent registered investment company, which will hold all of Yahoo’s remaining holdings in Alibaba Group Holding Limited (“Alibaba”) and Aabaco Small Business, LLC (a newly formed entity which will own Yahoo Small Business). Yahoo further disclosed in the September 8 Form 8-K that work was proceeding on the Aabaco spin-off plan, and that Yahoo’s Board of Directors would continue to carefully consider the Company’s options, including proceeding with the spin-off transaction on the basis of an opinion of counsel.

 "On September 14, 2015, the IRS issued a formal “no-rule” policy with respect to certain transactions similar to the Aabaco spin-off and, in a notice released on the same day, indicated that the IRS and U.S. Department of the Treasury are studying the possibility of promulgating new guidance with respect to such transactions in the future. Neither this ongoing guidance project nor the IRS’s decision not to rule with respect to the Aabaco spin-off transaction changes the current law applicable to the proposed spin-off. In addition, on September 19, 2015, an IRS official indicated in a public statement that any future guidance issued as part of the project would not apply retroactively to transactions completed prior to the issuance of such guidance.

 "On September 23, 2015, Yahoo’s Board of Directors authorized the Company to continue to pursue the plan for the Aabaco spin-off transaction as previously disclosed, except that completion of the spin-off will not be conditioned upon receipt of a favorable ruling from the IRS. The spin-off transaction will continue to be subject to certain other conditions, including final approval by Yahoo’s Board of Directors, receipt of a legal opinion with respect to the tax-free treatment of the transaction under U.S. federal tax laws and regulations, the effectiveness of an applicable registration statement filed with the Securities and Exchange Commission (“SEC”) and compliance with the requirements under the Investment Company Act of 1940, and other customary conditions, each of which conditions may be waived, in whole or in part (to the extent permitted by law), by Yahoo in its sole discretion.

"On September 28, 2015, Aabaco filed Amendment No.1 to its Registration Statement on Form N-2 which is available on the SEC’s website at www.sec.gov using the name Aabaco Holdings, Inc.
Completion of the transaction is expected to occur in the fourth quarter of 2015, subject to the conditions described above." (emphasis added) source: SEC Form 8-K (Sept 28, 2015)

Aabaco Amendment No. 1, Form N-2 (September 28, 2015): "... Following the Spin-Off, the Fund will be an independent, publicly traded, non-diversified, closed-end management investment company registered under the Investment Company Act of 1940 (the “1940 Act”). Immediately after the Spin-Off, the Fund’s investment assets will consist of 383,565,416 ordinary shares, par value US $0.000025 per share (the “Ordinary Shares”), of Alibaba Group Holding Limited (“Alibaba”), representing as of the date of this information statement an approximate 15 percent ownership interest in Alibaba, and a 100 percent ownership interest in Aabaco Small Business, LLC, which was formed by the Fund in connection with the Spin-Off and, prior to the Spin-Off, will acquire those assets and assume those liabilities that exclusively relate to the business that has historically been operated by Yahoo under the name “Yahoo Small Business.” We sometimes refer to Alibaba’s Ordinary Shares and Alibaba’s American Depositary Shares (the “Alibaba ADS”) collectively as the “Alibaba Shares.”..."

Domain names:
  • yahoo.com
  • investor.yahoo.net - (Yahoo investors relations) stock symbol: YHOO
  • alibabagroup.com
  • alibaba.com
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2015-09-09

Yahoo Withdraws Request for IRS Ruling on Spinoff of Alibaba Shares

YAHOO 5-day stock chart
YAHOO 5-day stock chart (source: google.com)
Above: Yahoo $YHOO shares fell on news that Yahoo had withdrawn its request for IRS private letter ruling on spinoff plan for its Alibaba shares $BABA 


Video above - Yahoo: IRS denies request for tax ruling on Alibaba share spinoff (CNBC.com)

Pursuant to a Form 8-K filed with the SEC, Yahoo has updated information concerning its planned spinoff Aabaco which would hold all of Yahoo's stock in Alibaba $BABA -- excerpts:

"On January 27, 2015, Yahoo! Inc. (“Yahoo” or the “Company”) announced a plan for a spin-off of all of Yahoo’s remaining holdings in Alibaba Group Holding Limited (“Alibaba”) into a newly formed independent registered investment company. As previously disclosed, the name selected for the new company is Aabaco Holdings, Inc. (“Aabaco”). The stock of Aabaco will be distributed pro rata to Yahoo stockholders, resulting in Aabaco becoming a separate publicly traded registered investment company. On July 17, 2015, Aabaco filed its initial Registration Statement on Form N-2 with the U.S. Securities and Exchange Commission (the “SEC”). Upon completion of the transaction, Aabaco would own, directly or indirectly, all of Yahoo’s remaining 384 million Alibaba shares, and a 100 percent ownership interest in Aabaco Small Business, LLC (“ASB”), a newly formed entity which will own Yahoo Small Business, a current operating business of Yahoo that will also be transferred to Aabaco as part of the transaction...

"On February 26, 2015, Yahoo submitted to the IRS a request for a private letter ruling with respect to whether Aabaco’s ownership and operation of ASB would satisfy the active trade or business requirement (the “ATB Requirement”) under Section 355 of the Internal Revenue Code of 1986, as amended (the “Code”) ... On September 2, 2015, the IRS notified Yahoo’s counsel that it had determined, in the exercise of its discretion, not to grant the requested ruling. At the same time, the IRS indicated that it had not concluded that the proposed spin-off transaction was taxable and therefore was not ruling adversely on the request. Following receipt of such notification, Yahoo withdrew its request for a ruling on September 2, 2015.

"Subsequent to the IRS’s decision with respect to its ruling request, Yahoo confirmed with its tax counsel, Skadden, Arps, Slate, Meagher & Flom LLP (“Skadden”), that the discretionary decision by the IRS not to grant Yahoo’s ruling request with respect to the ATB Requirement did not reflect any change in U.S. tax law with respect to the tax-free treatment of the proposed spin-off and would not affect Skadden’s ability to render an opinion that, under current law and subject to certain factual representations and assumptions, the currently proposed spin-off will satisfy all of the requirements for tax-free treatment under the Code, including the ATB Requirement. Work proceeds on the pending Aabaco spin-off plan. Yahoo’s Board of Directors will continue to carefully consider the Company’s options, including proceeding with the spin-off transaction on the basis of an opinion of counsel."

Domain names:  

  • aabacoholdings.com does not resolve (Sep 08, 2015)
  • luminate.com: Yahoo! Small Business is becoming Luminate: I am excited to share with you that Yahoo Small Business, as part of Aabaco, is expected to be spun off from Yahoo later this year, and will be reborn as Luminate, from Aabaco Small Business. Learn more.
  • yahoo.com
  • investor.yahoo.net - (Yahoo investors relations)
  • alibabagroup.com
  • alibaba.com

See also on Domain Mondo:




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