Yahoo Dips as Company Said to Lean Toward Dividend, Not Sale

Yahoo! Inc. shares dropped the most in more than two months after the company was said to be leaning toward selling its Asian assets and redistributing the proceeds to shareholders, rather than selling itself to a group of buyers.

This scenario is emerging as the most likely option for Yahoo and would let the Internet company eventually pay a special dividend or buy back shares, according to five people familiar with the situation, who declined to be identified because the talks are private.