Yahoo Shares Spike 7% On Report That It Might Sell Off Its Core Business

The Wall Street Journal is reporting that the board of Yahoo is considering selling off its core business in a series of upcoming meetings.

So, naturally, shares of the company spiked 7 percent in extended trading once the news came out. This is significant for Yahoo, which for the most part has seen its core business stagnate and the value of its stake in Alibaba outweigh the value of Yahoo proper.

The Journal is reporting that in the meetings, the board will decide whether or not to spin off its stake in Alibaba, sell off the company’s Internet assets, or both. The status of the company’s stake in Alibaba, which it proposed to spin off, had been up in the air after reports that the process could be more complicated when it comes to tax issues.

The company’s middling performance has led the stock to fall more than 30 percent on the year.

Combining the company’s stake in Alibaba and Yahoo Japan, shareholders have effectively valued the company’s core business as less than zero — which doesn’t show a whole lot of confidence in the direction of the company. Shareholders seem to care a whole lot more about the company’s stakes in Yahoo Japan and Alibaba.

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