Industry tracker eMarketer forecast that digital ad revenue taken in this year at Yahoo will fall almost 14 percent to $2.83 billion while money raked in by Silicon Valley rivals Google and Facebook will rise. The company paid search partners, including Google and Microsoft, $144 million during the quarter, up 44% from a year ago.
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Yahoo has hung out a “for sale” sign without doing much to improve its curb appeal.
Yahoo continues to attract more than 1 billion unique visitors a month to its online properties, long among the leaders on that score, but it’s spent a decade failing to spark much, if any, revenue growth.
The status of bidding for Yahoo’s core business is expected to be among questions fielded by Yahoo chief executive Marissa Mayer during a briefing after the first-quarter results are released later in the day.
The company expects an even bigger net revenue drop of 20 percent in the quarter ending in June.
Yahoo said that for the period ended March 31, it lost $99 million, or 10 cents a share.
On the previous earnings call, Mayer announced significant layoffs and a restructuring plan aimed at streamlining and focusing the company’s efforts on core areas of strength.
Smith replied, “Just because they’re going through a sales process right now doesn’t mean they’re necessarily going to follow through with the process, or get a good result in that process”. Inc said its business continued to deteriorate in the first quarter, putting more pressure on the company to find a buyer quickly for its Internet operations. Vetr lowered shares of Yahoo! from a “buy” rating to a “hold” rating and set a $35.12 price target for the company.in a report on Tuesday, December 22nd. Meanwhile, the company said its “top priority” remains a corporate sale.
Mayer did not provide details about any of the acquisition bids that have been recently submitted, but she said that the company was moving “expeditiously”. And the owner of the UK’s Daily Mail newspaper is also considering a bid in partnership with other parties. The US telecommunications company will face competition in the second round from other companies and private equity firms, reports Reuters. Analysts suggested that Yahoo might be sold for between $4 and $8 billion.
Yahoo’s financial news simply doesn’t show improvement, no matter how hard the company works and how many people it lays off to stay in the black. It’s uncertain what Yahoo will do with its 15% stake in China e-commerce leader Alibaba (BABA) or its big stake in Yahoo Japan.
Yahoo shares rose 1.4 percent, to $36.84, in after-hours trading. 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.
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“Our board, our management team and I have made the strategic alternative process a top priority”.
