Yahoo’s Board Rejects Plan to Spin off Its Stake in Alibaba

Yahoo’s Board Rejects Plan to Spin off Its Stake in AlibabaYahoo's $31 billion stake in Alibaba helps the company to maintain a market value of more than $32 billion.

On Wednesday, Yahoo's board of directors shelved the plans of spinning off Alibaba shares and creating a new company, which is the cash cow of the Yahoo.

On Wednesday in a conference call with investors Yahoo's Maynard Webb said, "We are aligned with the management team in our commitment to drive shareholder value." The company's move comes after several days of meetings.

Marissa Mayer said that Yahoo Japan "is a very important business partner", however for the moment "the highest priority is the Alibaba equity stake and we're focused on that." One more year passed with Yahoo trying to distract investors and trying hard to bring a turnaround headed by CEO Marissa Mayer. Ms. Mayer is currently in her fourth year making efforts to spike the revenue growth but continually failing in her efforts.

The company decided to keep its close to $31 billion stake in Alibaba under its Yahoo name rather than spinning off the remaining business, that also includes Yahoo Japan and its core internet business into a separate company.