Yahoo To Spin Off Small Business Unit

(RTTNews) - Yahoo Inc. (YHOO) has decided to spin off its Small Business unit, a division which provides tools to small enterprises to establish and conduct their businesses online, as part of the separation of its stake in Chinese e-commerce company Alibaba Group Holding Ltd. (BABA).

The internet technology company last month said it would initiate a tax-free spin-off of its remaining stake in Alibaba, into a newly formed independent registered investment company, the stock of which would be distributed pro rata to Yahoo shareholders. This will result in the formation of a separate publicly traded company.

The Small Business unit has over 100 employees. They can join the newly formed company, SpinCo. The transaction is expected to be completed in the fourth quarter of 2015. Once it is done, SpinCo will function under a new management and a new board of directors.