Yahoo! Inc. (NASDAQ:YHOO) released its fourth quarter earnings report after closing bell tonight, posting earnings of 13 cents per share, which was in line with the consensus, and $1.27 billion in revenue, against the consensus estimate of $1.19 billion. Management had guided for revenue of between $920 million and $960 million for the quarter. In last year’s fourth quarter, the search giant reported earnings of 30 cents per share and $1.18 billion in revenue.

Yahoo! Inc. Beats On Revenue, Confirms Strategic Options News

Yahoo posts massive GAAP loss

GAAP losses were $4.70 a share due to an impairment charge of $4.5 billion. Management said the charge was related to their “annual goodwill impairment test” in which they ruled that the “carrying value” of their North American, European, Latin American and Tumblr units surpassed their estimated fair values.

Traffic acquisition costs skyrocketed from $74 million in the fourth quarter of 2014 to $271 million in the fourth quarter of 2015. Adjusted EBITDA plunged from $409 million to $215 million. Mavens revenue grew to $472 million, while mobile revenue increased to $291 million. Gross search revenue declined 7% year over year to $866 million and GAAP search revenue climbed 12% to $522 million, while GAAP display revenue grew 13% to $601 million.

Yahoo report confirmed

Less than an hour before closing bell, there were reports that Yahoo management would announce that they are exploring strategic options, which could mean that the company is thinking about selling all or some of its online properties. Those reports were confirmed. Management said the board is pursuing a reverse spin and other strategic alternatives. The goals are to improve product quality and profitability and increase value for shareholders, among other items.

Yahoo has been under fire for quite some time from Starboard Value, which sent a letter to the board of directors in January in a last ditch attempt to get some big-time change at the Internet firm and said it had been contacted by parties interested in buying some or all of Yahoo.

We also heard that management would announce layoffs and plans to close some of the company’s businesses tonight. Yahoo confirmed the reports and announced plans to shutter some of its businesses, including Yahoo Screen and other segments. The company plans to trim its workforce by 15% and close five offices as well. It will also sell off some of its assets.

Yahoo shares dipped in after-hours trades, falling by as much as 1.38% to $28.71.