Yahoo posted revenue and earnings on Tuesday that topped estimates of analysts just slightly, but CEO Marissa Mayer said she was doing everything possible to facilitate a corporate sale saying it was the top priority for Yahoo shareholders.
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Yahoo’s first-quarter loss compares to a 21 million-dollar (£14.6m) profit previous year.
Yahoo exceeded expectations this quarter, but those expectations were low – and they’re down from a year ago.
In trading Tuesday, Yahoo shares were up more than 4% at $37.90, their highest level since July. “Our 2016 plan is off to a solid start as we continue to focus on driving efficiency, lowering costs, and improving long-term growth”, said Mayer.
“In tandem, we made substantial progress towards potential strategic alternatives for Yahoo!”. Private equity firms Apax Partners LLP, TPG Capital LP, Bain Capital LLC, Apollo Global Management LLC and Warburg Pincus LLC have also submitted first- round bids.
According to new reports, Verizon seems to be leading the way in their efforts to acquire Yahoo after a few prominent suitors dropped out of the bidding.
While the company spirals into ruin, losing audiences and dropping content verticals, The Guardian reports that Mayer – who many blame for the company’s failure – is poised to make out like a bandit. That would leave Yahoo as a holding company with valuable stakes in China’s e-commerce leader, Alibaba Group Holding Ltd (阿里巴巴), and Yahoo Japan.
Mobile revenue, the “M” in CEO (for now) Marissa Mayer’s beloved Mavens – mobile, video, native, social – was a bright spot, up from $234 million to $260 million. This category continued to show growth in the first quarter, generating $390 million in sales, an increase of 7 percent.
She said execs take part “in daily calls and meetings, often several per day, with the strategic review committee and its advisors”.
On a per-share basis, the Sunnyvale, California-based company said it had a loss of 10 cents. If it’s not, Mayer and Yahoo’s entire board faces a revolt from activist shareholder Starboard Value, which has said it would push to remove Mayer and all the directors at Yahoo’s shareholder meeting this spring. Starboard Value has nominated nine candidates, including its CEO Jeffrey Smith, to replace Yahoo’s current board.
In February, Yahoo said it was cutting 15 percent of its workforce and narrowing its focus as it explored ‘strategic alternatives’.
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For Verizon, a purchase of AOL and an interest in Yahoo are signs that it sees its future in digital advertising and content. Many companies say that, including AOL and Yahoo, which both ended up for sale after trying and failing.
