Yahoo! (YHOO) Slammed as Value of Alibaba (BABA) Stake Collapses

Yahoo! (NASDAQ: YHOO) is under heavy pressure early Wednesday in light of disappointing results from Alibaba (NYSE: BABA). Shares of YHOO are down 5.3%, which corresponds with a 8% drubbing of BABA.

Yahoo is seeking to spin-off its remaining holdings in Alibaba Group Holding Limited into a newly formed independent, publicly traded, registered investment company. The name selected for the new public company is Aabaco Holdings, Inc.

Under the spin-off plan, Yahoo will 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.

Yahoo expects the spin-off to be completed in the fourth quarter of 2015.

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