The board of Yahoo Inc will consider a sale of its core Internet business when it meets this week.
The company’s leaders are currently discussing its future and the direction CEO Marissa Mayer is taking the struggling technology firm.
The Wall Street Journal first reported the possible sale of the Internet business late on Tuesday. Sources close to the company told the newspaper that they expected to discuss a potential sale from Wednesday through Friday. They will also discuss whether to proceed with a spin of more than $30 billion in shares of Alibaba Holding Group Ltd. The company could also pursue both options.
Shares were up more than 7% in extended trading.
Yahoo’s core business includes services such as Yahoo Mail and its news and sports sites.
News of a potential sale come at a time when questions over Marissa Mayer’s ability to turn around the company have begun to surface more frequently. Mayer has struggled to grow the company’s advertising business to compete with market leaders Google and Facebook.
When Mayer took over Yahoo’s plan to push mobile, video, native and social media ads largely failed to increase mobile revenues, while desktop search ads continued their freefall.
Investors in 2013 argued that Marissa Mayer overpaid for Tumblr when acquiring the company for $1.1 billion. While Yahoo hit 1 billion users on its platforms thanks to the sale, it didn’t do anything to draw in advertisers.
In September, the company’s planned spinoff of Alibaba was dealt a blow when the U.S. Internal Revenue Service denied a request to issue a tax-free deal.
Yahoo said it planned to proceed with the spinoff despite the IRS announcement, but the company has been slow to move forward with its plans.
Marissa Mayer’s perceived failure at Yahoo has come as a surprise to many supporters. While working at Google for 13 years she helped launch Google Earth, Gmail, and Google News, all of which have been huge successes for the internet giant. Her expertise in building platforms is what drew her into the Yahoo position.