Yahoo is considering cutting its 40 percent stake in Alibaba Group Holding Ltd., Bloomberg reported today citing unnamed sources.

The Yahoo board is scheduled to meet later today to consider the transaction, Bloomberg added.

Yahoo acquired its stake in Alibaba for about $1 billion in 2005. Alibaba Group is China?s biggest e-commerce company.

The New York Times previously reported that Yahoo is considering reducing its stake in Alibaba in a tax-free deal valued at about $17 billion.