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Yahoo shareholders promised return on Alibaba
San Francisco — Yahoo Inc. is retaining more of its stake in Alibaba Holding Ltd. under a new agreement and promised to return cash to shareholders from at least half of any proceeds from the Chinese e-commerce company's initial public offering.
Yahoo also reported revenue, excluding that passed onto partner sites, of $1.04 billion, down from $1.07 billion a year earlier, the company said in a statement Tuesday.
That compared with analysts' average estimate of $1.09 billion, according to data compiled by Bloomberg. Profit, excluding items such as stock-based compensation, was 37 cents a share, while analysts had projected 38 cents a share.
Yahoo Chief Executive Officer Marissa Mayer, while benefiting from the company's stake in Alibaba, is struggling to deliver growth as she contends with popular rivals such as Google and Facebook. Yahoo will receive a multibillion payment when it sells part of its holding in Alibaba.
"We are committed to return at least half of the after-tax IPO proceeds to shareholders, in line with our over-arching commitment to maximizing shareholder value through prudent capital allocation," said Ken Goldman, Yahoo's chief financial officer.