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2015.02.0400:19:39UTC+00 Yahoo to spin off Small Business unit with Alibaba stake

Yahoo decided to spin off its Small Business unit as part of the spinoff of its stake in Alibaba Group Holding Ltd.

The company announced last week about a tax-free spinoff of its 15% stake in Alibaba into a newly formed independent registered investment company responding to pressure to hand over to shareholders its prized e-commerce investment valued at roughly $40 billion.

The new entity would include its 384 million shares in Alibaba as well as an unspecified "legacy, ancillary" Yahoo unit, Yahoo said.

The transaction will occur in Q4 2015 as expected. The unit will move to SpinCo prior to completion of the transaction. 

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