As revenues sink, Yahoo mulls bid options

Apr 20, 2016, 2:09 AM EDT
Source: abhisawa/flickr)
(Source: abhisawa/flickr)

Yahoo, the internet giant that has been struggling to adapt to the dynamics of online advertising in the recent years, saw its revenues plummeting by nearly 12 percent in the first quarter of 2016 compared to the same period last year, prompting it to review offers from prospective bidders. Although the company could meet the modest target of $1.08 billion, it had set for itself, the Wall Street investors were left disappointed with the firm’s financial performance.

Despite posting negative net earnings of $99 million, Yahoo’s revenue collection was higher than what many experts had predicted, and the positivity reflected in its shares, which fared well in the after-hours trading on Wall Street, writes the BBC. While appreciating the company’s steady start in the year, Yahoo's chief executive Marissa Mayer said the emphasis lies on “driving efficiency and lowering costs” in addition to ensuring long-term growth.

Facebook, the social networking platform that offers rich targeting in display advertising, has dented Yahoo’s business model, notes International Business Times. Since last year, Yahoo has adopted strict cost-cutting measures, which included slashing the company’s payroll by as high as 21 percent. As a result of layoffs, which began in February, the company’s digital platforms related to food, beauty and travel are on the verge of a lockdown. 

TAGS: Yahoo