FAQs

Altaba plans to make an initial post-dissolution liquidating distribution to the stockholders on our transfer books as of October 4, 2019 as soon as practicable following entry of an order from the Delaware Court of Chancery (the “Court Order”) establishing the amount and form of security Altaba is required to retain to cover our known and potential liabilities. We currently expect the Court Order to be issued no earlier than late 2020, although there can be no assurances regarding the timing of the Court Order. However, depending on the Court’s schedule, rulings, and other factors, the distribution could occur significantly later.

To the extent that claims for which Altaba has set aside reserves under the Court Order are resolved or satisfied at amounts less than such reserves, and assuming no need has arisen to establish additional reserves, Altaba could make additional distributions to stockholders.

However, Altaba is unable to predict the possibility or timing of any additional liquidating distributions following the initial post-dissolution liquidating distribution.

In general, distributions made pursuant to the Plan of Complete Liquidation and Dissolution, including the pre-dissolution liquidating distribution, will be treated for U.S. federal income tax purposes as a series of distributions in complete liquidation of Altaba in which amounts received by stockholders are treated as full payment in exchange for their shares of Altaba common stock.

A liquidating distribution received by a U.S. stockholder will first be applied against and reduce the stockholder’s adjusted tax basis in its Altaba common stock, before the stockholder recognizes any gain or loss. A U.S. stockholder will recognize gain as a result of a liquidating distribution to the extent that the aggregate value of the liquidating distribution and any prior liquidating distributions received by the stockholder with respect to a share exceeds the stockholder’s adjusted tax basis in the share. A U.S. stockholder generally cannot recognize a loss on a liquidating distribution until the final liquidating distribution is made, and then only if the aggregate value of all liquidating distributions with respect to a share is less than the stockholder’s adjusted tax basis in the share. If a U.S. stockholder holds different blocks of Altaba common stock (generally as a result of having acquired shares at different times or at different prices), gain or loss is calculated separately with respect to each such block. Any gain or loss recognized by a U.S. stockholder will be capital gain or loss provided the stockholder holds its Altaba common stock as a capital asset.

For a general summary of certain material U.S. federal income tax consequences of the Plan of Complete Liquidation and Dissolution, including a more detailed description of the U.S. federal income tax consequences of liquidating distributions to U.S. stockholders, please see Altaba’s proxy statement dated May 17, 2019 under “Proposal No. 1: Approval of the Plan of Liquidation and Dissolution — Material U.S. Federal Income Tax Consequences of Liquidation and Dissolution.” That summary and the above discussion are for general information purposes only and are not tax advice. Altaba can make no assurances as to the tax consequences of distributions made pursuant to the Plan of Complete Liquidation and Dissolution. Stockholders are urged to consult their own tax advisors as to the specific tax consequences of such distributions to them in light of each stockholder’s particular circumstances, including the applicability and effect of any U.S. federal, state and local, and foreign tax laws.

In general, a non-U.S. stockholder will not be subject to U.S. federal income or withholding tax with respect to any gain realized on a liquidating distribution unless (1) the gain is effectively connected with the stockholder’s conduct of a U.S. trade or business (and, if required by an applicable income tax treaty, is attributable to a U.S. permanent establishment), or (2) in the case of a non-U.S. stockholder that is a nonresident alien individual, the stockholder is present in the United States for 183 or more days in the taxable year of the liquidating distribution and certain other requirements are met. A non-U.S. stockholder that holds Altaba common stock through an account with a U.S. financial institution or other withholding agent (such as a broker-dealer) should consult that institution regarding the U.S. withholding requirements.

For a general summary of certain material U.S. federal income tax consequences of the Plan of Complete Liquidation and Dissolution, including a more detailed description of the U.S. federal income tax consequences of liquidating distributions to non-U.S. stockholders, please see Altaba’s proxy statement dated May 17, 2019 under “Proposal No. 1: Approval of the Plan of Liquidation and Dissolution — Material U.S. Federal Income Tax Consequences of Liquidation and Dissolution.” That summary and the above discussion are for general information purposes only and are not tax advice. Altaba can make no assurances as to the tax consequences of distributions made pursuant to the Plan of Complete Liquidation and Dissolution. Stockholders are urged to consult their own tax advisors as to the specific tax consequences of such distributions to them in light of each stockholder’s particular circumstances, including the applicability and effect of any U.S. federal, state and local, and foreign tax laws.

Pursuant to Delaware law, our corporate existence will continue until at least October 2022, or for a longer period of time if ordered by the Delaware Court of Chancery, for the purpose of prosecuting and defending suits, winding up Altaba and making distributions to stockholders.

Stock certificates are not required to be surrendered as part of Altaba’s liquidation and dissolution. Upon the payment of the final liquidating distribution, Altaba will issue a press release to the effect that all outstanding shares will be deemed to be cancelled. Therefore, there will be no collection or surrendering of stock certificates.