Yahoo share price bumps as Marissa Mayer says from will spin off Alibaba stake
Yahoo is once again looking to spin off its stake in Alibaba – less than three months after suspending plans to sell its holdings the Chinese ecommerce giant.
The flailing tech firm has hired Wall Street banks Goldman Sachs and JPMorgan Chase to advise a new "Strategic Review Committee" who will explore a potential sale of the company.
Chief executive Marissa Mayer is under pressure from Yahoo investors to sell off the struggling company's core businesses.
The company's 15 per cent stake in Alibaba is thought to be worth $25bn (£17.5bn) and in selling it off Mayer said she would be "maximising value for our shareholders".
Read more: Yahoo stock rises after it promises not to spin off Alibaba stake
Yahoo's share price has steadily slumped in the last year, but was over two per cent up in early trading on the Nasdaq after Mayer signalled the company's intent to sell its Alibaba stake.
"Separating our Alibaba stake from Yahoo's operating business is essential to maximising value for our shareholders," she said.
"We can achieve this by working with the committee…while in parallel, aggressively executing our strategic plan to strengthen our growth businesses and improve efficiency and profitability."
In a statement, Yahoo said its new Strategic Review Committee would "establish a process for outreach to and engagement with potentially interested strategic and financial parties.
"The Strategic Review Committee will recommend to the Board whether any proposed transaction is in the best interests of the Company and its shareholders."