Yahoo forms committee to review "strategic alternatives"

NEW YORK - Yahoo's board has created a committee of independent directors and hired a trio of economic advisers in its long-running bid to redefine itself.

Shares rose 1.2 percent in early trading Friday.

Yahoo Inc. (YHOO) is under extraordinary pressure from big shareholders who are threating a proxy fight with the company. It cut 15 percent of its staff earlier this month with investors pushing for a sale of Yahoo's core Internet operations after 3 1/2 years of declining revenue under CEO Marissa Mayer.

"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.

The company on Friday said that it had hired Goldman Sachs, J.P. Morgan and PJT Partners Inc. as advisers to the new committee tasked with engaging interested strategic and financial parties.

Mayer said in a written statement Friday that splitting off Yahoo's lucrative stake in China's Alibaba is "essential" to boost shareholder value.