Despite recent discussions that Yahoo was preparing to sell off its core internet business, the company has failed to update investors as to whether or not it has a found a buyer while simultaneously revealing that it suffered a £332 million loss during Q2 2016.
Yahoo's CEO, Marissa Mayer instead told investors that “progress” had been made on its strategic alternatives. However, she did not clarify as to exactly what this meant.
The company did see an overall rise in revenue to $1.3 billion during the second quarter of this year. Yahoo's mobile revenue also increased from $330 million to $378 million.
Mayer offered more details regarding the company's second quarter results, saying: “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.”
“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 biggest disappointed to come out of Yahoo's financial results was the news that Tumblr performed so poorly during the quarter. The company suffered a $482 million write-down of the microblogging site this quarter. Yahoo now sees Tumblr as a website that is no longer profitable after acquiring it for $1.1 billion just three years ago.
The company's search revenues have decreased by 13 per cent year over year, which will likely make it difficult to sell of its core internet business for what it had previously expected to be quite a large sum of money.
Yahoo is now going to have to sell of its internet business for around $5 billion which is much less than what the company had originally valued it at.
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