Yahoo has abandoned plans to spin off its remaining stake in Alibaba in favour of transferring its core internet business to a new company.
The Board of Directors unanimously voted to suspend the plans, originally announced in January 2015, citing unspecified ‘developments’ since then.
The company added that it is now considering alternative structures to separate the Alibaba stake, with a specific focus on a ‘reverse spin off’.
This would entail transferring all of Yahoo‘s other assets, including its core internet business, into a newly formed, publicly traded company.
Stocks in the new company would be distributed to Yahoo shareholders on a pro rata basis.
"A separation from our Alibaba stake, via the reverse spin, will provide more transparency into the value of Yahoo’s business," said Marissa Mayer, CEO of Yahoo.
The company suggested that the transaction could take a year or more to conclude.
Content from our partners
