Yahoo Profits Down 26%, Sale Very Likely

October 21 00:00 2011

New York, Oct 21 (RainbowNewsLine.com) – The Sunnyvale, California based internet major, Yahoo.com is seeing turbulent times. The third quarter results have brought about more turbulence than expected. Yahoo’s revenues are down by 24% compared to the last quarter while net profit is down by 26%. This comes at a time when other companies in the same industry like Google Inc are posting revenue increases to the tune of 33% and historic rise in profitability.

Yahoo has shown all the signs of a company in turmoil. Recently, the board also fired the CEO Carol Bartz; however, that did little to help the cause. The company has lost out to competitors like Facebook that have provided advertisers with a cheaper and better way to reach audiences. Google Inc has survived the hit because of its growing presence in the mobile commerce sphere. Moreover, Google is still the gold standard for search engines.

Yahoo’s sale looks imminent given the current state of affairs.  Most suitors are interested in the company’s stake in Alibaba.com which is a China based trade portal. Yahoo’s home page, which has consistently been drawing large amounts of traffic for many years, is also a big asset for the company.

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