New CEO relooks Yahoo's strategy, Alibaba sale

Web company's chief Marissa Mayer reviewing company's strategy, namely, its initial plan to return proceeds of Alibaba sale to shareholders, leading to drop in Yahoo stock.

Marissa Mayer, the new chief executive of struggling Internet giant Yahoo, is re-evaluating the company's business strategy including the initial plan to distribute to Yahoo shareholders the expected proceeds from the pending sale of Alibaba shares.

According to a Thursday filing with the U.S. Securities and Exchange Commission (SEC), Yahoo said Mayer, who took over as CEO last month , was engaged in a "review of the company's business strategy to enhance long-term shareholder value".

The filing said the review could lead to a re-evaluation or changes in the company's current plans, including restructuring plans as well as the previously announced plan to return all after-tax cash proceeds of the initial share repurchase by the Alibaba Group to Yahoo shareholders.

In May, Yahoo agreed to let  Alibaba buy back 20 percent of its shares for around US$7.1 billion.

News of Mayer's review sent Yahoo's shares slipping. It dropped 3.56 percent to US$15.44 in after-market trading, AFP reported Friday.