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Plans by Yahoo Inc's board to consider selling its struggling Internet business sent the company's shares up nearly 6 percent on Wednesday, as investors cheered a potential new way to separate Yahoo's traditional services from its valuable investment in Chinese Web merchant Alibaba.
Yahoo's board is weighing the sale of the Internet business at a three-day board meeting starting on Wednesday, a source familiar with the matter told Reuters. The board did not reach a decision on Wednesday and will continue discussions on Thursday, CNBC reported.
Chief Executive Officer Marissa Mayer's attempts to revive the traditional business have born little fruit Cheap De'Vondre Campbell Jersey , and almost all of Yahoo's market capitalization of about $34 billion is ascribed to its stakes in Chinese e-commerce company Alibaba Holding Group Ltd and Yahoo Japan Corp.
A separate Alibaba stake would be expected to be more highly valued by the market, but investors want to avoid a massive tax bill in the process. Selling the traditional business is seen as one way possibly to achieve that.
Broken out as a separate company, Yahoo's email, Yahoo and Tumblr web sites and mobile services could fetch between $2 billion and $8 billion Cheap Brian Poole Jersey , analysts and bankers said, many seeing $4 billion as the likely price.
After such a sale, all that would be left, essentially Cheap Grady Jarrett Jersey , is the Alibaba and Yahoo Japan stakes.
""Realizing value is far from assured, however,"" Pivotal analyst Brian Wieser wrote in a note. ""The big question is whether anyone would actually show up with a meaningful bid.""
Interested bidders could range from private equity companies attracted to Yahoo's still-huge base of customers to technology companies eager for Yahoo's mobile and web content, following the model of Verizon Communications Inc buying AOL.
The Wall Street Journal said potential bidders could include Verizon and IACInterActiveCorp. A source familiar with Verizon's thinking said currently there were no talks between the companies. IAC did not immediately respond to a request for comment.
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