Yahoo revenues decline as internet firm reviews bid options

Yahoo has reported a $99m (£69m) quarterly loss, compared to a $21.2m profit for the period last year, as it reviews offers from potential bidders.

The internet firm also saw revenues fall 11.6% to $1.08bn in the January-March period from the quarter in 2015.

But the revenue fall was better than analysts’ forecast, and Yahoo’s shares rose in after-hours trading on Wall Street.

In February, Yahoo said it was looking for buyers for its core internet arm.

The deadline for potential bids was Monday.

In a statement Yahoo’s chief executive Marissa Mayer said: “Our 2016 plan is off to a solid start as we continue to focus on driving efficiency, lowering costs, and improving long-term growth.

“In tandem, we made substantial progress towards potential strategic alternatives for Yahoo.”

Verizon, YP Holdings – formerly Yellowpages.com – and private equity firm TGP have all expressed an interest. And the owner of the UK’s Daily Mail newspaper is also considering a bid in partnership with other parties.

Continuing to struggle

Over the last few years Yahoo has struggled to keep up with the changing internet advertising landscape, with some analysts arguing that it has failed to remain relevant in many of its core markets.

Investors have been disappointed with Ms Mayer’s inability to secure a turnaround for internet firm.

Activist investor Starboard Value has proposed replacing Yahoo’s entire board of directors.

Yahoo announced that it was looking for potential buyers for its core businesses after plans to sell its stake in Chinese e-commerce giant Alibaba fell through.

Despite the fall in revenues, the figures were well received by investors and Yahoo’s shares rose 1% in extended trading.

“Given all the challenges Yahoo has faced with the reduction of its workforce and the Alibaba spinoff plan, to come in and deliver these numbers is a very positive thing,” JMP Securities analyst Ronald Josey said.

Source: BBC