Yahoo's board is weighing the sale of the Internet business at a three-day board meeting that started from yesterday, a source familiar with the matter told.

Chief Executive Officer Marissa Mayer's attempts to revive the traditional business have born little fruit, and almost all of Yahoo's market capitalization of about USD 34 billion is ascribed to its stakes in Chinese e-commerce company Alibaba Holding Group Ltd and Yahoo Japan Corp.

A separate Alibaba stake would be expected to be more highly valued by the market, but investors want to avoid a massive tax bill in the process.

Broken out as a separate company, Yahoo's email, Yahoo and Tumblr web sites and mobile services could fetch between USD 2 billion and USD 8 billion, analysts and bankers said, many seeing USD 4 billion as the likely price.

After such a sale, all that would be left, essentially, is the Alibaba and Yahoo Japan stakes.

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