Shares of Yahoo fell 4.4 percent to $15.30 in after hours trading on Thursday.
Sunnyvale-based Yahoo, which hired CEO Marissa Mayer last month, said in a filing with the U.S. Securities and Exchange Commission on Thursday that Mayer has started a review of the company's strategy.
The filing said the review "may lead to a re-evaluation" of Yahoo's previously announced plans to return to shareholders substantially all of the after-tax cash proceeds under the initial share repurchase from the May 2012 deal with Alibaba.
Under the agreement, Yahoo was to sell one-half of its stake in Alibaba for at least $6.3 billion in cash and up to $800 million in new Alibaba preferred stock.
"There was an expectation of getting that cash back, so I think there will definitely be some disappointment," said RBC Capital Markets analyst Andre Sequin.
As part of Mayer's review, Yahoo said, she would look at the company's growth and acquisition strategy, the restructuring plan launched by her predecessor, and Yahoo's cash and capital allocation strategy.