Last week on Monday, Verizon announced acquisition of Yahoo's core businesses. (Photo : Getty Images)
Shareholders of the Internet giant Yahoo expressed eagerness on when they can cash in their stakes and what the future holds after the sale to Verizon.
Yahoo's deal with Verizon does not include Alibaba's 15 percent stake and the joint venture with Yahoo Japan that comprises 35.5 percent.
Yahoo Japan's stakes are now valued at $8 billion. Alibaba's stake is more than $30 billion.
These stakes have been for sale, but the Internet company failed to profit from them. Yahoo, however, tried to sell them with their advertising tools and email.
They decided to leave out the sale of the stakes after receiving notice from the U.S. Internal Revenue Service that a big tax bill will have to be paid. When the sale commenced on Monday, Yahoo refused to comment on the unsold stakes.
One shareholder, Eric Jackson, managing director at SpringOwl Asset Management LLC, said, "Hopefully by the end of this year, we have some sort of transaction, preferably with Alibaba buying its stake back and Yahoo Japan buying its stake back."
Robert Willens, a corporate law tax consultant, suggested that a "cash-rich" split off can be done. This deal would involve Yahoo and Yahoo Japan exchanging shares for cash and assets.
Yahoo board member Tom McInerney, who is chairman of its strategic review committee, said that they are finding a way to sell Alibaba shares at the current taxable value.
Because of the huge value of the shares, the Internet company will have to pay $12 billion in taxes, according to Morningstar analyst Ali Mogharabi.
Mogharabi also expects that Yahoo will sell Alibaba stakes at a discount in the open market. Stockholders would also want to avoid paying taxes, and would just want to get rid of them.
However, Yahoo can also opt for an asset swap. Alibaba is the only company that can save Yahoo from the huge tax burden.
Alibaba has not released any statement.
