NEW YORK (TheStreet) -- Shares of Yahoo! (YHOO) are climbing by 0.87% to $40.82 after CEO Marissa Mayer said that the company's plan for a spinoff of its stake in Alibaba (BABA) is on track as planned, Bloomberg reports.
"We're proceeding with our plan as proposed," Mayer said. "It's based on an understanding of a few key things. I can't presume to speak for the IRS but given our understanding of that fact pattern, we should proceed with the transaction as planned."
When Yahoo said it planned to spin off its Alibaba assets in January, the process was expected to be tax free. The stake was valued at almost $40 billion, Bloomberg reports.
As Alibaba shares will be distributed to Yahoo shareholders, Mayer said she's confident about the plan, Bloomberg noted.
Separately, TheStreet Ratings team rates YAHOO INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate YAHOO INC (YHOO) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income."