Yahoo, the company with a big “For Sale” sign on its lawn, shared its first-quarter 2016 results today, revealing revenues of $1.087 billion and earnings per share of $0.08.
Wall Street analysts expected quarterly revenue of about $1.08 billion and earnings per share of $0.07 or so. Yahoo exceeded expectations this quarter, but those expectations were low — and they’re down from last year.
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Searching for a buyer
Today’s earnings release is Yahoo’s first since revealing a new “aggressive strategic plan,” which basically equated to laying off staff, closing five international offices, and alerting potential bidders that it’s willing to sell.
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Meanwhile, executive departures continue as various products are shuttered in an apparent effort to streamline operations. In March, Yahoo shut down its Games site, video chat app Livetext, Build Your Own Search Service (BOSS), and various regional sites.
Interestingly, the reported deadline for potential suitors to submit their first-round proposals was yesterday. Reports have surfaced with names of companies possibly interested in (all or part of) Yahoo, including Verizon, Alphabet, AT&T, Comcast, IAC/InterActive Corp., Time Inc, Daily Mail, and even YP Holdings.
Leaked documents obtained by Re/code suggest that Yahoo’s financials are pretty scary. Yahoo reportedly estimates a 15 percent drop in revenue and a 20 percent decline in earnings this year. Yahoo CFO Ken Goldman revealed in March that the company is looking to shed $1 billion to $3 billion in “non-core assets” in an effort to become a leaner entity.
And the battle between CEO Marissa Mayer and activist investor Starboard continues. Starboard is leading a revolt as the investor seeks control over Yahoo’s board. It’s likely that, if it succeeds, Mayer will no longer be Yahoo’s CEO, even though she may like to remain in that position even after an acquisition.
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