Yahoo still considering Alibaba 'reverse spin'

Yahoo was still considering its options over the separation of its core business and the Alibaba wholesale marketplace this week, though a 'reverse spin' - whereby the company would spin off Yahoo, rather than Alibaba - was still on the cards.

The California-based internet giant said on Friday it had formed a Strategic Review Committee of independent directors to lead the effort, with the assistance and support of management.

Yahoo said the committee had engaged Goldman Sachs, JP Morgan and PJT Partners as its financial advisors, and Cravath, Swaine & Moore as its legal advisors.

The committee was now establishing a process to engage with potentially interested strategic and financial parties. It would then recommend to the board whether any proposed transaction was in the best interests of the company and shareholders.

"The Board recently formed an independent committee to conduct a process to evaluate strategic alternatives for the company. We have hired excellent advisors and are working closely and in alignment with management to pursue an effective process," said Maynard Webb, Yahoo's Chairman of the Board.

"The Board is thoroughly committed to exploring strategic alternatives while simultaneously supporting management and the employees in their implementation of Yahoo's strategic plan. We believe that pursuing these complementary paths is in the best interests of our shareholders and will maximize value."

Yahoo CEO Marissa Mayer said that separating the stake in Alibaba from Yahoo's operating business was essential to maximising value for its shareholders. She explained that, in addition to the reverse spin, there were strategic alternatives that could achieve the separation while strengthening the business.

"As both shareholders and employees, all of us here at Yahoo want to return this iconic company to greatness. We can best achieve this by working with the committee to pursue various strategic alternatives while, in parallel, aggressively executing our strategic plan to strengthen our growth businesses and improve efficiency and profitability," Mayer explained.

Yahoo's board said it had no intention of making any further announcements until either a definitive transaction agreement was reached, or a determination was made that none would be pursued.