X

Yahoo Dumps Plan to Sell Alibaba

Board moves instead to sell off core businesses
By Newser Editors and Wire Services
Posted Dec 9, 2015 7:11 AM CST

(Newser) – In something of an abrupt about-face, Yahoo is scrapping its original plan to spin off its prized stake in China's Alibaba Group and will instead break off the rest of its business into a new company. The change of heart announced Wednesday comes after Yahoo's board met last week to review the proposed Alibaba spin-off, as well as CEO Marissa Mayer's stalled attempts to turn around one of the Internet's best-known companies. The move is what the Wall Street Journal calls "a blow" to Mayer's turnaround, and it prolongs "the uncertainty of a 20-year-old Internet company fighting for survival."

Yahoo said its board will now look at alternatives to separate the Alibaba stake, focusing specifically on a reverse spin-off. The company said in the reverse spin-off, Yahoo assets and liabilities other than the Alibaba stake would be transferred to a newly formed company. The end result would be two separate, publicly traded companies. (Read more Yahoo stories.)

We use cookies. By Clicking "OK" or any content on this site, you agree to allow cookies to be placed. Read more in our privacy policy.