Yahoo! Q4 Profit Tops Estimates; To Spin-Off Remaining Stake In Alibaba

(RTTNews) - Yahoo! Inc. (YHOO) reported fourth-quarter net income attributable to company of $166.34 million, compared to $348.19 million, prior year. Net income attributable to stockholders per share was $0.17, compared to $0.33. Adjusted earnings per share was $0.30, for the quarter.

On average, 31 analysts polled by Thomson Reuters expected the company to report profit per share of $0.29 for the quarter. Analysts' estimates typically exclude special items.

Revenue decreased to $1.25 billion from $1.27 billion last year. Revenue ex-TAC was $1.18 billion, compared to $1.20 billion. Analysts expected revenue of $1.19 billion for the quarter.

Yahoo! Inc. also announced its management has recommended and the Board has authorized a plan for a tax-free spin-off of the company's remaining holdings in Alibaba Group (BABA) into a newly formed independent registered investment company. The stock of the new company will be distributed pro rata to Yahoo shareholders, resulting in the new company becoming a separate publicly traded company. Following the spin-off, Yahoo will continue to operate its core business and hold its 35.5% interest in Yahoo Japan. The new company will own all of Yahoo's remaining 384 million shares of Alibaba, as well as a legacy, ancillary Yahoo business.