Yahoo dubs Alibaba stake spinoff as Aabaco Holdings

The spinoff previously known as SpinCo will incorporate all of Yahoo Small Business as well as 15 percent of Alibaba Group.

Yahoo is moving forward again with the spinoff plans for its very valuable stake in Chinese e-commerce giant Alibaba.

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The technology company announced on Friday afternoon that the new publicly traded investment company will be known as Aabaco Holdings, Inc.

The spinoff previously known as SpinCo will incorporate all of Yahoo Small Business as well as 15 percent (roughly 384 million shares) of Alibaba Group.

All outstanding shares of Aabaco Holdings will be doled out to Yahoo shareholders.

When the spinoff was first announced in January, those millions of Alibaba shares translated to roughly $40 billion with the promise the valuation would be bumped up to $50 billion when the deal is done.

The Small Business department, responsible for helping SMBs get their businesses online, was folded into the spinoff plans in February.

However, "no vote of Yahoo's stockholders is required or being sought to authorize or effectuate the Spin-Off," according to the N-2 form filed by Aabaco with the U.S. Securities and Exchange Commission.

Yahoo is shooting to complete the spinoff by the fourth quarter of 2015. Before then, the proposal still needs to be approved by Yahoo's board of directors.

After the split, Yahoo and Aabaco plan to operate independently and neither will have ownership interest in the other.

The spinoff is expected to be a huge cash windfall for Yahoo, although it is questionable how and where Yahoo will deploy its new resources.

Nevertheless, the search company will still have its core business along with a 35.5 percent stake in Yahoo Japan.

Yahoo is scheduled to publish second quarter financial results on Tuesday, July 21 after the closing bell.