Yahoo shares rise on speculation of “core” business sell-off and Alibaba stake as Marissa Mayer and board meet
Shares in US media and tech firm Yahoo have shot up more than six per cent as speculation surrounding the company's future mounts.
It's been suggested Yahoo is considering selling off its core internet business – it's main news and sports website and email service – when its board meets this week.
Just a fortnight ago, activist investor Starboard urged Yahoo and boss Marissa Mayer to drop plans for spinning of its stake in Alibaba, keeping hold on to the more lucrative asset and instead sell-off its search and display advertising business.
"The proposed spin-off of Aabaco Holdings is not Yahoo's best alternative. Instead, you should be exploring a sale of Yahoo's core Search and Display advertising businesses and leave Yahoo's ownership stakes in Alibaba Group and Yahoo Japan in the existing corporate entity," said the board of directors in a letter made public by Starboard, which holds a "significant" stake in Yahoo.
A planned sale of its stake in Chinese search giant Alibaba has hit bump in the road after the US taxman ruled it wouldn't be a tax-free move.
Now, Yahoo may be doing just that, or even getting rid of both, according to media reports, and this appears to have pleased investors.