Yahoo’s board of directors has completed its three day long meeting without any decision on the proposed sale of its 15% stake in Chinese e-commerce firm Alibaba.
In 2005, Yahoo invested $1bn in Alibaba, and divested 140 million shares of the Chinese e-commerce giant during Alibaba’s IPO which helped Yahoo reap $9.4bn before tax.
Earlier this year, Yahoo filed an application to spin off its interest in Alibaba to an independent new company, called Aabaco Holdings.
Last month, activist shareholder Starboard Value urged Yahoo to stop its plan to sell off its stake in Alibaba.
The investor wrote to Yahoo saying that its plan to dispose of $20bn worth of shares carries too great a risk now, as America’s tax authorities have not guaranteed that the spinoff would not incur taxes.
Yahoo has been struggling to restore its core online advertising business. The company’s results for the third quarter of 2015 fell short of expectations, although revenue from mobile, video, native, and social (Mavens) grew 43% to $422m.
Content from our partners
