IT'S OFFICIAL: Yahoo is not spinning off its Alibaba stake

Yahoo officially announced that it has suspended work on spinning off its Alibaba stake, in a statement on Wednesday morning.

"The Board will now evaluate alternative transaction structures to separate the Alibaba stake, focusing specifically on a reverse of the previously announced spin transaction," the statement said.

On Tuesday, CNBC and the New York Times had reported that the company was not moving forward with the complicated transaction that was expected to have been completed in January.

The company said its board reconsidered the spinoff after considering what was was in the best long-term interest of shareholders.

Yahoo shares were up nearly 3% in premarket trading.

More to come ...

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