Yahoo's board may be considering selling its core search and display advertising businesses after an activist investor demanded that the company explore doing so last month, according to reports.
The Wall Street Journal said Yahoo’s board will be meeting this week to discuss the sale.
Yahoo previously said it would not sell, but planned to spin off its shares in Alibaba Holding Group instead.
Last month, Starboard Value's Managing Member Jeffrey C. Smith said that Yahoo should explore a sale of its core business of search and display advertising rather than selling its shares in Alibaba.
Smith said 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," referring to the company’s Alibaba stake. Yahoo owns 15% of Alibaba.
Smith threatened that his hedge fund "will look to make significant changes to the Board if you continue to make decisions that destroy shareholder value."
Yahoo's revenue grew 6.8% in the third quarter, but profits dropped to $76 million. The company also saw several key staff members leave.