“Yahoo’s adjusted earnings of 9 cents a share missed analysts” estimate of 10 cents a share.
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Yahoo disclosed that during the second quarter of 2016, it took impairment charges totaling $482 million for Tumblr, the blogging site it acquired in 2013 – the biggest deal under Mayer’s leadership.
Marissa Mayer, who was named Yahoo Inc.’s CEO on July 16, accepts her award at Glamour magazine’s 2009 Women of the Year awards at Carnegie Hall in NY.
The tepid progress in turning around the business attracted pressure from activist investors who pushed Yahoo to launch an auction of its core business in February.
Chief executive Marissa Mayer said in the earnings webcast that “we have no announcement today” on the bidding, but noted that “we are deep into the process of evaluating all the proposals”.
Last quarter the company said it would cut 15 percent of its workforce, leaving it with a headcount 42 percent lower than in 2012, and expected to return to growth in 2017 and 2018.
Yahoo’s revenue’s for the quarter rose to $1.31 billion from $1.24 billion past year, reflecting a change in revenue presentation. The company is reported to be accepting the final rounds of bids from interested buyers of its core internet business on Monday afternoon.
Gross search revenue for the quarter was $765 million, a 17 percent decrease from the same period previous year.
The remaining bidders, which are expected to include Verizon Communications Inc. and private-equity firm TPG, have expressed concerns about the flagging financial prospects of Yahoo, which continues to cede share of the online-ad market to Alphabet Inc. and Facebook Inc.
“In addition to our efforts to improve the operating business, our board has made great progress on strategic alternatives”, Mayer said in a statement.
While Mayer did not delve into Yahoo’s forthcoming sale, but she did confirm search partnerships with Apple, Bing, Google, Mozilla, and Oracle, among others.
The Sunnyvale, California, company began soliciting bids five months ago.
Potential buyers for the internet company are being narrowed down as the third round of bids also came due on Monday.
Yahoo (YHOO) shares were up slightly in aftermarket trading Monday to $38, after closing at $37.95.
“We expect any offer in the range of $5-plus billion (nearly Rs 33,263.7 crore) should be accepted by the Yahoo board to bring the process to a close”, he said. In a recent note, investment bank RBC Capital Markets said, “We will be looking closely at the performance of the Mavens segment to determine if Yahoo can offset the declines seen in its traditional advertising segments”.
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While Mayer originally planned to spin off Yahoo’s stake in Chinese firm Alibaba, that idea was binned to make room for the internet sell off.
