Yahoo's stock price recently surged after reports surfaced that the company's board of directors might sell off its core internet business.
According to the Wall Street Journal, the board is planning to hold a series of meetings this week about the selling of the internet business. The meeting will also discuss how to make most of their company stake in Chinese e-commerce powerhouse Alibaba Group Holding Ltd
Yahoo! has opened up more than 5 percent of their shares at $35.44. The tech-giant company's stock price closed at $33.71 at Tuesday down to 10 cents. Hours after the news broke about the board's plan to put its core internet business on the auction block, stocks eventually spiked to 7 percent.
Yahoo was once considered as one of the dominant internet business in the world. However, the tech-giant company recently suffered in business due to the emergence of their competitors like Google and other search engines that hold powerful brands like Tumblr and Flickr.
However, fact remains that the recent information is mostly hearsay since the company has not yet released any statement about the issue. Re/Code reported this week that the planned meetings are just the annual board meetings that Yahoo Company often holds every December.
Investors, on the other hand, are hoping that the rumors are truly based on the stock price spike that recently happened in the company. The activist investor starboard value LP even told Yahoo to offload its internet business rather than selling it in Alibaba and Yahoo Japan.
A letter addressed to Yahoo chairman Maynard Web and CEO Marissa Mayer said that separating Yahoo Japan and Alibaba from Yahoo Company's search and display ad business will unlock its value for shareholders and allow the company to recruit and retain talent.
"Yahoo is the only Silicon Valley Company we know that currently has a stock price almost entirely driven by the value of an entity outside of its control. Top talent wants to be able to directly contribute to, and be rewarded by, its company's stock price performance," the letter reads.
