Yahoo looking at other options after IRS ruling: Sources

Marissa Mayer
Ruben Sprich | Reuters

Sources tell CNBC that Yahoo will likely go ahead with the spin-off of its ownership stake in Alibaba, but that the company may be considering a reverse spin.

Yahoo will consider spinning off its ownership in Yahoo Japan and leaving the Alibaba stake, the sources indicated. The company is likely to decide in the next few weeks on its new plan.

Read More Yahoo could lose billions from the IRS nonruling

A Tuesday filing showed that the the Securities and Exchange Commissions had informed Yahoo that it will not rule on whether the planned Alibaba spin would be tax-free.

Yahoo stock opened Wednesday trading about half a percent lower.

—CNBC's David Faber contributed to this report.