YHOO is essentially a proxy for BABA, nothing Yahoo does affects the stock price in any meaningful way, and the value of the core business is effectively negative, if you subtract the post-tax value of Alibaba, Yahoo Japan, and cash on hand. But the value of a declining business with billions in revenue each year must be positive.
So selling off Alibaba and Yahoo Japan is the best bet, except you have investors demanding that it be done tax-free, so you can't just sell them, even though the decline of the value of Alibaba during the time it takes to do this process might be larger than the taxes. If Alibaba keeps going down in value, selling it now gives you more money than selling it tax-free in the future. But that might still get you sued by the shareholders, which is stupid.
A reverse spin-off, i.e. selling the core business, has some funny implications as well. Many employees are on work visas, which are tied to a specific employer at a specific address. If this changes, all of those visas become invalid. Obviously, selling the assets and shrinking the market cap, would make it much easier for someone to buy Yahoo.