Yahoo: run into the ground
I need a chance to vent about one company that just released earnings: Yahoo! I worked at Yahoo! for a number of years in a former life. It is a great brand and was a great company. But, the place has clearly been run into the ground.
Yahoo! had an offer in February from Microsoft for $44.6 billion or $31 a share, what was then a 62% premium. Management rejected this offer. The company ended the day today down to $12 a share after disappointing numbers and cutting 10% of staff. Shambolic.
This is a case of management NOT doing what is in its employees and shareholders best interest. What do I care — I sold my options long ago. But, it still irks me that such incompetence is not rewarded with a pink slip. The Silicon Valley company reported its third consecutive quarter of falling revenues and lowered its forecast for the fourth quarter. The layoffs follow Ebay’s announcement of a 1,500 reduction in its headcount this month and a wave of cuts by smaller web companies. Yahoo reported revenues of $1.325bn, after subtracting payments to partners – below analyst expectations of $1.369bn averaged by Reuters Estimates. Earnings per share of 9 cents were a cent above expectations. Meanwhile Apple cruises along. Clearly, this is a tale of two cities. Related articles
Yahoo on Tuesday announced a cut of at least 10 per cent in its workforce by the end of the year as it reported a disappointing third quarter caused by weakening display advertising sales.
Yahoo profit drops 64%; announces plans to cut at least 1,500 jobs – National Post
Yahoo’s $36.6 Million Bill for Outside Advisers – Deal Book
About Edward Harrison
No related posts.