Yahoo Forms Committee To Explore 'Strategic Alternatives,' Including Sale of Alibaba Stake
Yahoo said its board formed a committee to “evaluate strategic alternatives for the company,” which may include a sale of its $32 billion stake in Chinese e-commerce company Alibaba and other Yahoo components. Yahoo has faced pressure from its investors…
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to take action, given the 40 percent slide in the company’s stock since late 2014. Yahoo announced plans in early February to lay off 15 percent of its staff after reporting a net loss of more than $4.3 billion for 2015. “Separating our Alibaba stake from Yahoo’s operating business is essential to maximizing value for our shareholders. In addition to the reverse spin, there are strategic alternatives that could help us achieve the separation, while strengthening our business," Yahoo CEO Marissa Mayer said in a news release. Yahoo’s board believes “pursuing these complementary paths is in the best interests of our shareholders and will maximize value,” Chairman Maynard Webb said.