Yahoo to Spinoff Alibaba Shares into Aabaco Holdings
Aabaco Holdings will own about 384 million shares, or a 15 percent stake, of Alibaba Group.
Yahoo has set plans in motion for the forthcoming spinoff of its Alibaba shares.
The tech giant filed an initial statement with the SEC on Friday detailing plans to spin its approximately 284 million Alibaba shares into a separate private company called Aabaco Holdings. This new company will own about 15 percent of Alibaba in addition to a new division called Yahoo Small Business that will offer marketing and selling tools to small business owners.
Yahoo CEO Marissa Mayer announced plans for the spinoff on January 27. Under the spinoff plan, Yahoo will distribute outstanding shares of Ababaco Holdings pro rata to its shareholders.
Yahoo made about $6.3 billion, after taxes, off Alibaba's 2014 IPO.