Yahoo Inc. officially filed to spin off its holdings in Alibaba on Friday, which will establish a new company called Aabaco Holdings. Aabaco will consist of about 15% ownership of Chinese e-commerce giant Alibaba, along with a Yahoo segment that delivers cloud services to small businesses. The spin-off, originally announced in January, is Yahoo’s attempt to deliver the value of its Alibaba investment to Yahoo shareholders while avoiding a large tax bill. Yahoo expects the spin-off to take effect in the fourth quarter, the company said in a Friday news release.
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