Yahoo to explore strategic alternatives alongside spin-off

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Feb 2 (Reuters) - Yahoo Inc said on Tuesday it was exploring strategic alternatives in addition to the continued pursuit of the reverse spin-off of its Internet business.

The company also said it would cut about 15 percent of its workforce and close offices in five locations.

Shares of Yahoo, which also reported fourth-quarter results, fell 1.4 percent in after-hours trading on Tuesday.

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The company said it would simplify its product portfolio and that it had begun to explore divesting non-strategic assets.

Yahoo on Tuesday also reported a 15 percent fall in adjusted quarterly revenue as it struggles to keep its share of online search and display advertising in the face of tough competition from Facebook Inc and Alphabet Inc's Google.

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Yahoo to explore strategic alternatives alongside spin-off
Marissa Mayer, president and CEO of Yahoo!, arrives at The Metropolitan Museum of Art's Costume Institute benefit gala celebrating "China: Through the Looking Glass" on Monday, May 4, 2015, in New York. (Photo by Evan Agostini/Invision/AP)
In this Feb. 19, 2015 photo, Yahoo President and CEO Marissa Mayer delivers the keynote address at the first-ever Yahoo Mobile Developer's Conference, in San Francisco. Mayer was the highest paid female CEO in 2014, according to a study carried out by executive compensation data firm Equilar and The Associated Press. (AP Photo/Eric Risberg)
FILE- In this Monday, April 19, 2010 file photo, Google vice president of search products and user experience, Marissa Mayer, attends the 2010 Matrix Awards presented by the New York Women in Communications at the Waldorf-Astoria Hotel in New York. Yahoo announced Monday, July 16, 2012, that it is hiring longtime Google executive Marissa Mayer to be its next CEO, the fifth in five years as the company struggles to rebound from years of financial malaise and internal turmoil. Mayer, who starts at Yahoo Inc. on Tuesday, was one of Googleâs earliest employees and was most recently responsible for its mapping, local and location services. (AP Photo/Evan Agostini)
Marissa Mayer attends the Glamour Magazine 2009 Women of the Year Awards at Carnegie Hall on Monday, Nov. 9, 2009 in New York. (AP Photo/Evan Agostini)
Marissa Mayer, Vice President of Search Products and User Experience at Goggle Inc., speaks about the new Google Earth 5.0 at the California Academy of Sciences in San Francisco, Monday, Feb. 2, 2009. Google Inc. is launching a new version of Google Earth that will let users explore the oceans, view images of Mars and watch the Earth's surface change over time. (AP Photo/Jeff Chiu)
Marissa Mayer, president and chief executive officer of Yahoo! Inc., speaks during the 2015 Fortune Global Forum in San Francisco, California, U.S., on Tuesday, Nov. 3, 2015. The forum gathers Global 500 CEO's and innovators, builders, and technologists from some of the most dynamic, emerging companies all over the world to facilitate relationship building at the highest levels. Photographer: David Paul Morris/Bloomberg via Getty Images
Marissa Mayer, president and chief executive officer at Yahoo! Inc., smiles during the 2015 Bloomberg Technology Conference in San Francisco, California, U.S., on Tuesday, June 16, 2015. Mayer said that the company's spinoff of its stake in Alibaba Group Holding Ltd. is proceeding as planned. Photographer: David Paul Morris/Bloomberg via Getty Images
NEW YORK, NY - MAY 04: Marissa Mayer, President and CEO of Yahoo attends 'China: Through The Looking Glass' Costume Institute Benefit Gala - Press Preview at Metropolitan Museum of Art on May 4, 2015 in New York City. (Photo by Bennett Raglin/WireImage)
NEW YORK, NY - APRIL 27: Yahoo CEO Marissa Mayer attends the 2015 Yahoo Digital Content NewFronts at Avery Fisher Hall on April 27, 2015 in New York City. (Photo by Cindy Ord/Getty Images for Yahoo)
Marissa Mayer, president and chief executive officer at Yahoo! Inc., smiles during a press conference at the Yahoo! Inc. Mobile Developer Conference in San Francisco, California, U.S., on Thursday, Feb. 19, 2015. Mayer unveiled a suite of development tools for mobile applications that integrate its own advertising services with features it acquired with analytics startup Flurry Inc. Photographer: David Paul Morris/Bloomberg via Getty Images
Marissa Mayer, chief executive officer of Yahoo! Inc., listens during a panel session on day four of the World Economic Forum (WEF) in Davos, Switzerland, on Saturday, Jan. 25, 2014. World leaders, influential executives, bankers and policy makers attend the 44th annual meeting of the World Economic Forum in Davos, the five day event runs from Jan. 22-25. Photographer: Jason Alden/Bloomberg via Getty Images
Yahoo CEO Marissa Mayer speaks during her keynote address at the 2014 International CES in Las Vegas, Nevada, January 7, 2014. AFP PHOTO / ROBYN BECK (Photo credit should read ROBYN BECK/AFP/Getty Images)
Marissa Mayer, president and chief executive officer of Yahoo! Inc., reacts during the DreamForce Conference in San Francisco, California, U.S., on Tuesday, Nov. 19, 2013. Yahoo boosted its stock-buyback plan by $5 billion, returning more cash to shareholders as Mayer seeks to revive growth at the largest U.S. Internet portal. Photographer: David Paul Morris/Bloomberg via Getty Images
Marissa Mayer, chief executive officer of Yahoo! Inc., smiles at the TechCrunch Disrupt SF 2013 conference in San Francisco, California, U.S., on Wednesday, Sept. 11, 2013. Yahoo! Mayer said the Web portal has surpassed 800 million active monthly users, a 20 percent increase since she joined the company in July 2012. Photographer: David Paul Morris/Bloomberg via Getty Images
Marissa Mayer, CEO of Yahoo, attends the Cannes Lions 2014, 61st International Advertising Festival in Cannes, southern France, Tuesday, June 17, 2014. The Cannes Lions International Advertising Festival is a world's meeting place for professionals in the communications industry.(AP Photo/Lionel Cironneau)
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Chief Executive Marissa Mayer, who joined Yahoo in 2012 from Google, has been trying to revive the Internet pioneer's core media and online advertising business by spending heavily to draw more users to its websites.

Mayer proposed in December that Yahoo spin off its main business, which includes its search engine, digital advertising units and its email service, after Yahoo abandoned efforts to sell its stake in Chinese e-commerce giant Alibaba Group Holding Ltd. But the company had provided few details.

Traffic acquisition costs (TAC), the amount Yahoo spends to attract users to its websites, rose to $271 million in the fourth quarter ended Dec. 31, from $74 million a year earlier.

Yahoo's revenue - after deducting fees paid to partner websites - fell to $1.00 billion from $1.18 billion.

The company reported a loss of $4.43 billion, or $4.70 per share, in the quarter, compared with a net income of $166.3 million, or 17 cents per share, a year earlier.

Excluding items, Yahoo earned 13 cents per share, in line with analysts' average expectations.

Up to Tuesday's close of $29.06, Yahoo's shares had fallen 35 percent in the past 12 months. (Reporting by Abhirup Roy and Anya George Tharakan in Bengaluru and Deborah M. Todd in San Francisco; Editing by Savio D'Souza)

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