Yahoo on Wednesday confirmed rumors it would no longer spin off Alibaba after months of planning.

The board at Yahoo is looking for other options for its stake, Tech Crunch reported. After fears that spinning off Alibaba would be taxed, Yahoo decided to end the spin-off efforts, saying it was best for investors to revise plans to that end.

Yahoo's stake in Chinese e-commerce giant Alibaba is worth about $32 billion. Yahoo carefully reviewed the risks and value of the spin-off and decided it was not the right time for the move.

Instead, Yahoo will take all of its assets and liabilities other than Alibaba and transfer them to a newly formed company. This means there will be two publicly traded companies comprising Yahoo.

The reverse spin-off Yahoo is electing to perform is something investors will find less risky and something markets will react to better.

The splitting of Yahoo into two separate companies will still require approval from the SEC and shareholders. After all of that is complete, Yahoo said it could still take over a year for the process to go through.

"In 2016, we will tighten our focus and prioritize investments to drive profitability and long-term growth. A separation from our Alibaba stake, via the reverse spin, will provide more transparency into the value of Yahoo's business," CEO Marissa Mayer said.

Yahoo will operate differently once the spin-off is completed. The company will be focused on business and e-commerce, rather than its web-based content.

Yahoo has struggled in recent years with Google and Facebook hogging most of the ad revenue on the web. Analyst Andrew Frank believes Yahoo can perform better as a media company than a technology company. Frank said that Yahoo should manage several different brands, and if they cannot do that alone, they should join another organization.