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.
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.
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. Clearly, this is a tale of two cities.
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