In In re Altaba, the Delaware Court of Chancery, ruling at a preliminary stage of the dissolution process, authorized Altaba Inc. to make an interim liquidating distribution of up to $4.3 billion to its stockholders. Vice Chancellor J. Travis Laster’s opinion is noteworthy because it is one of the few opinions to authorize an interim distribution in a case arising under Sections 280 and 281(a) of the General Corporation Law of the state of Delaware, Delaware’s so-called “long-form” dissolution statutes, and is the first opinion to authorize a liquidating distribution of this magnitude. The opinion also provides important guidance with respect to several other issues that arise in long-form dissolutions, and, given the unprecedented size and complexity of Altaba’s dissolution, it will likely be the first of a number of opinions and orders to do so in this case.

Prior to its dissolution, Altaba was known and operated as Yahoo Inc. In 2017, the company sold the Yahoo business to Verizon Communications Inc. and changed its name to Altaba. From that point on, Altaba’s assets primarily consisted of the proceeds from the Yahoo sale and shares of capital stock of Alibaba Group Holding Limited, a Chinese internet services and technology company.