Yahoo revealed Friday that it has formed a special committee of independent directors that will explore strategic alternatives and develop a process to reach out to interested parties for a possible sale.

Yahoo stock rose during premarket trading after the news broke, up 2.55 percent at 8.38am EST from the previous day's close.

Among the key considerations for the web giant  is what to do with its multibillion-dollar stake in Chinese e-commerce giant Alibaba. For tax reasons, Yahoo may separate itself from the holding in a move known as a reverse spin.

“Separating our Alibaba stake from Yahoo’s operating business is essential to maximizing value for our shareholders,” CEO Marissa Mayer said in a statement. "In addition to the reverse spin, there are strategic alternatives that could help us achieve the separation, while strengthening our business." 

J.P. Morgan, PJT Partners and Goldman Sachs are working with the company as financial advisors in the process.

Yahoo's most recent earnings report did not bring good news. Although the earnings themselves beat analyst expectations, Yahoo confirmed plans to reduce its workforce by 15 percent, close several offices around the world and aim to cut annual outgoings by $400 million.

Yahoo this week also announced that it would be shuttering several of its vertical news sites.

One potential buyer for the troubled company could be Verizon. In December 2015, the company hinted that it could add Yahoo to its content portfolio. “If Yahoo is right, we might look at it,” said CFO Francis Shammo at a conference in New York. Other possible buyers in the telecom space include AT&T and Comcast.

Another potential buyer could be IAC/InterActiveCorp, but chairman Barry Diller dismissed the idea in a January interview with Bloomberg. Yahoo would not be worth buying, Diller said, "unless, essentially, you got it at such a discounted price."