After Alibaba spinoff, Yahoo may become a takeover target

Yahoo's $39 billion stake in the Alibaba Group, the Chinese e-commerce behemoth — accounting for about 85 percent of its market value — has obscured both the weakness and the potential of the Silicon Valley stalwart.

By spinning off the stake into a separate company, Yahoo will be judged by its core Internet businesses, the New York Times reports.

“I used to be very bearish on the prospects of what they could possibly do,” said Ben Schachter, an analyst with Macquarie Securities. “Today, while I’m not fully convinced that the turnaround can succeed, I’m more impressed than I was even six months ago.”

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