A 'Defining Moment' For Yahoo

• Yahoo! Inc. YHOO shares have plunged 31 percent year to date from a high of $50.15 on January 2.
• Robert S. Peck of SunTrust Robinson Humphrey has maintained a Buy rating and price target of $40 on the company.
• According to a CNBC report, the company’s board is expected to announce on December 9 that it intended to pause the spin of its Alibaba Group Holding Ltd BABA shares and consider other alternatives.

Analyst Robert Peck believes that “this is a great idea due to the tax risks inherent in the current spin plans,” saying that this decision was a “positive defining moment for the company and the board.”

This decision demonstrates that Yahoo and its board is able to adapt to new information and remain committed to its fiduciary responsibility. Peck applauded the board’s focus on optimizing the company’s structure, while minimizing risk and maximizing shareholder value.

According to the SunTrust report, Yahoo have several alternatives to look at, including “selling the core, selling the entire company, or doing a cash rich tax-free split of Asian assets.”

In addition, there could be various potential buyers for the company’s core business, including large media companies, telcos and other Internet firms.