Yahoo’s Second Quarter Earnings Report Fall Short of Expectations
On Monday Yahoo Inc reported its earnings for the second quarter which could not keep up with the Wall Street expectations. This might well be the last financial report of Yahoo before its core business is sold off.
Yahoo's adjusted earnings of 9 cents a share missed analysts' estimate of 10 cents a share. The company announced a $482 million write-down on Tumblr's value. It is the social media service which Yahoo acquired in 2013 for $1.1 billion. However, even at this stage when Yahoo's chapter just might close with a sales deal, CEO Marrisa Mayer says, she still remains 'optimistic' and committed to the company and its future. Yahoo's core business including its search and advertising business are up for sale and the company is expected to choose the winning bidder this week. The Sunnyvale, California based Technology Company only said its board has made "great progress on strategic alternatives" without mentioning any definite specifics.
Reportedly, among the interested buyers are Verizon Communications Inc and AT&T Inc, TPG Capital and a consortium led by Dan Gilbert and supported by billionaire Warren Buffett.
Yahoo's trump card is its stakes in Alibaba and Yahoo Japan, which together are worth much more than the value of its internet business.