Yahoo continues to struggle with spiralling losses and no buyer in sight
Yahoo, the struggling internet search giant, has missed yet another financial target, seeing continued losses as it keeps up the as-yet-fruitless search for a buyer
Yahoo has once again missed its quarterly earnings target, fuelling speculation that the fallen internet search giant is nearing the end of the road. The company’s “seemingly permanent decline”, as it was put by Brian Wieser in a note to investors last year, has many questioning its renewed commitment to product innovation, user experience and advertising revenue.
The company’s latest earnings report is proof that the core business line is still shrinking. Despite a $60m uptick in revenue for the three months to June, buoyed both by its core internet business and mobile services, the company’s losses widened to $440m over the period.
These issues notwithstanding, CEO Marissa Mayer struck a markedly positive note in the firm’s latest earnings report. “With the lowest cost structure and headcount in a decade, we continue to make solid progress against our 2016 plan. Through disciplined expense management and focused execution, we delivered Q2 results that met guidance across the board and in some areas exceeded it”, she said.
Yahoo’s losses widened to $440m over the three months to June
Mayer has embarked on an aggressive cost-cutting exercise in recent times, having slashed the global workforce by 15 percent in February. Her record at the helm, however, has been regularly questioned by analysts, and confidence in her leadership has been shaken by a failure to deliver on promises of a turnaround.
She is one of a handful who remain hopeful in light of what otherwise looks like an irreparable situation for Yahoo. “In addition to our efforts to improve the operating business, our board has made great progress on strategic alternatives. We are relentlessly focused on delivering shareholder value.”
The disappointing results could hardly come at a worse time, as Yahoo continues the search for a prospective buyer. The process, it seems, is nearing an end, and the board is expected to accept any offer north of the $5bn mark.
To read more on the tragic demise of Yahoo, read a new special report on the topic online and in the print edition of The New Economy.
