Yahoo may rethink use of cash from Alibaba deal
SAN FRANCISCO |
SAN FRANCISCO (Reuters) - Yahoo Inc said it may re-evaluate plans for what it does with the cash it gets from a multibillion-dollar deal to sell a portion of its stake in Chinese Internet company Alibaba Group.
Shares of Yahoo fell 3.2 percent to $15.50 in afterhours trading on Thursday.
Yahoo, which hired new Chief Executive Marissa Mayer last month, said in a filing with the U.S. Securities and Exchange Commission on Thursday that Mayer has started a review of the company's strategy.
As part of the review, Yahoo said Mayer would look at the company's growth and acquisition strategy, the restructuring plan launched by the previous CEO and Yahoo's cash and capital allocation strategy.
The filing said the review "may lead to a re-evaluation" of Yahoo's previously announced plans to return to shareholders substantially all of the after-tax cash proceeds under the initial share repurchase from the May 2012 deal with Alibaba Group.
(Reporting By Alexei Oreskovic; Editing by Richard Chang)
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