UPDATED: Yahoo’s stock surged Wednesday on reports that the company might sell off its Internet business.
Shares of the struggling digital player opened up more than 5% at $35.44. The company’s stock price closed Tuesday at $33.71, down 10 cents, but spiked as much as 7% in after-hours trading once the news broke that its board is meeting this week to consider putting its Internet arm on the auction block.
Expectations were high when Yahoo tapped Google executive Marissa Mayer in 2012 to lead its turnaround. She’s struggled to right the ship, however, and a push to invest more in original television series, typified by the company’s rescue of the canceled NBC sitcom “Community,” resulted in tens of millions of dollars in losses.
Yahoo’s most recent quarterly earnings missed projections and the company was forced to cut its fourth quarter guidance — moves that put pressure on the stock.