Yahoo Board Considering Sale of Internet Business (Report)
Activist investor Starboard Value wrote a letter to Yahoo urging the company to forgo plans to spin off its stake in Alibaba Group and instead sell its core Internet business.
The Yahoo board will weigh a potential sale of the beleaguered tech company's core business during a series of meetings this week, according to a report in the Wall Street Journal.
The meetings come a little more than a week after activist investor Starboard Value sent a letter to Yahoo urging the company to forgo plans to spin off its stake in Alibaba Group and instead sell its search and display advertising businesses.
In meetings that will begin Wednesday and continue through Friday, the board is expected to weigh whether to seek a sale or proceed with its spinoff of $30 billion in Alibaba shares, according to the Journal. Yahoo declined to comment.
Yahoo CEO Marissa Mayer, who was hired three-and-a-half years ago to turn around the business, has faced mounting pressure in recent months as she has seen an exodus of senior executives, including former CMO and head of media Kathy Savitt and chief development officer Jacqueline Reses. The company posted weak third-quarter earnings in October, missing analyst expectations with $1.23 billion in revenue and earnings of 15 cents per share.
Yahoo shares closed Tuesday even at $33.71 on the Nasdaq, but rose as much as 7 percent in after-hours on the deal chatter. The company's shares are down 32 percent since the beginning of the year.