Yahoo CEO Marissa Mayer said Wednesday the company made a wise decision by looking at other options for Alibaba, now that it's no longer planning to spin it off its stake in the Chinese online retailing giant.
The decision came amid uncertainty over whether the spinoff of the 384-million-share stake would be taxed. The IRS told Yahoo earlier this year it would not rule on whether the company could avoid a tax hit when putting its stake in a separate entity, which it planned to name Aabaco.
"Overall, we did see indication, certainly in the market, around tax uncertainty and the duration of time it might take to get to resolution," Mayer told CNBC's "Squawk on the Street." "Given that, we feel it's prudent at this time to look at alternatives like the reverse spin."