Fairfax shares have been smashed after it failed to entice private equity buyers to part with their cash to take over the media and real estate company.
With no buyer, Fairfax Media is pressing ahead with a spin-off of its real estate classifieds division Domain into a separate entity.
Fairfax's share price fell sharply - to a three-month low - following these latest developments.
At 11:53am (AEST), Fairfax shares were trading 11.6 per cent lower at 97.25 cents.
In a statement to the market, Fairfax said its top priority was "investing to grow and further strengthen the Domain Group".
Fairfax chief executive Greg Hywood said the company has "progressed all the necessary regulatory approvals to meet our timetable for completion [of separating Domain from Fairfax] by the end of 2017".
Domain is the desirable part of Fairfax, which attracted the private equity interest, given that it was the only growing part of the company in the second half of the 2016-17 financial year.
Domain's overall revenue rose 10 per cent "with its total digital business up 22 per cent and accelerating".
Fairfax also announced its plans, last week, to enter the lucrative mortgage broking business in July - with the launch of Domain Loan Finder.
The company is expecting pre-tax earnings between $262 million -$266 million (for the full year ended June 30), and overall second-half revenue to be 6 per cent lower that what it earned in the 2015-16 financial year.
Its other business divisions - including Australian Community, Macquarie Radio and New Zealand Media - operated at a loss during this period.
However, the sharpest drop in revenue (12 per cent) was seen in its Australian Metro Media division - which publishes The Sydney Morning Herald, Australian Financial Review and The Age.
Back in May, Fairfax announced it would cut 125 journalist jobs - around a quarter of its newsroom - to cut costs, which triggered a one-week worker strike.
Another of Fairfax's priorities is "driving growth" in its subscription video-on-demand joint-venture with Nine, Stan, which it expects to break-even next year.
Fairfax is not counting on takeover bids
The company said it "has ceased discussions" with its suitors - private equity firms TPG Capital and Hellman & Friedman - in regards to a potential takeover bid.
Both firms expressed interest in buying Fairfax in May, with no guarantees that their indicative proposals would result in firm offers.
TPG confirmed on Sunday that it had ditched its plans to buy Fairfax for $2.76 billion after examining the media company's books.
Hellman & Friedman also wrote to Fairfax, stating it was still interested in making an offer but has not yet submitted a formal bid.
Hellman's previous non-binding approach was worth up to $2.87 billion (valuing Fairfax at as much as $1.25 per share).
