Yahoo Successor Altaba Must Keep $2.1 Billion Through Winding-Up

Altaba Inc., the successor entity left behind when Yahoo’s operating assets were sold to Verizon Communications Inc., must set aside more than $2 billion to cover potential liabilities that may pop up after it dissolves, a Delaware judge ruled.

Vice Chancellor J. Travis Laster tallied up the reserve amounts suggested by Altaba in a brief opinion for Delaware’s Chancery Court, finding that the company had proven the adequacy of the set-aside, the vast majority of which would cover federal taxes of up to $1.8 billion.

The amount also includes $85 million for “presently unknown future claimants,” including $50 ...