Yahoo said Friday it has formed an independent committee to explore "strategic alternatives alongside its continued consideration of a reverse spin."
The company said the committee will determine whether a proposed transaction is in Yahoo's best interests.
"The Board is thoroughly committed to exploring strategic alternatives while simultaneously supporting management and the employees in their implementation of Yahoo's strategic plan. We believe that pursuing these complementary paths is in the best interests of our shareholders and will maximize value," Yahoo Chairman Maynard Webb said in a statement.
Yahoo had intended on using Aabaco, a public holding company, as a way to distribute its Alibaba shares to shareholders in January 2015, but the IRS put a stop to the plan, telling Yahoo it would not rule on whether the structure of the deal would qualify as a tax-free spinoff.
"Separating our Alibaba stake from Yahoo's operating business is essential to maximizing value for our shareholders. In addition to the reverse spin, there are strategic alternatives that could help us achieve the separation, while strengthening our business," CEO Marissa Mayer said in a statement.
Shares of Yahoo gained 2.9 percent in the premarket, while Alibaba's stock was up slightly.
On Feb. 2, Yahoo said it would lay off 15 percent of its workforce in hopes of trimming operating expenses by over $400 million.
Disclosure: CNBC has a content-sharing partnership with Yahoo's finance site.