Ryan Gaumont reports that the board of directors of Yahoo Inc. has made a change in the company’s plans for its future. The company will not go forward with a proposed sale of its shares in the Chinese e-commerce company Alibaba, a move championed by Yahoo CEO Marissa Mayer, even after the IRS refused to go along with a proposal that the transaction should be tax-free. Alibaba is similar to Amazon.
The Yahoo board decided instead that it would spin off its core businesses and keep the stake in Alibaba. The core businesses would become a separately traded public company. This would position the core businesses to be sold off. Analysts have estimated the value of these businesses as somewhere between $4 billion and $8 billion.
Yahoo has had its share of troubles in the years since the dot-com bubble. During Marissa Mayer’s time as CEO, Yahoo’s situation seemed to improve. The latest decision by Yahoo’s board of directors may be “setting the stage for what may be the final act of a Web pioneer that failed to reinvent itself in the smartphone age.”
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