Yahoo CEO Marissa Mayer said that the company did not have updates to share about the sale of of its Alibaba investment and its core business. Last quarter, a report from the Wall Street Journal said that Verizon Communications was leading the pack for potential suitors for buying the company in the first round of bids. Yahoo, however, said its board has made “great progress on strategic alternatives” but did not comment further on the auction process.
Others making a bid for Yahoo include Bain Capital, TPG and Advent International. Bidders who dropped out of the first round include Google’s parent Alphabet, AT&T, Comcast and InterActive Corp.
The Internet and media company reported revenues of $1.3 billion for the quarter ended June 30 (Q2 2016) up 5.22% from $1.24 billion in the same quarter last year. Losses, however increased to $440 million compared to $22 million in the same quarter last year. In the preceding quarter, Yahoo had posted a net loss $99 million. The losses were attributed to $466 million goodwill impairment from its acquisition of Tumblr (it had paid $1 billion for the company) and loss from operations ($490 million).
Other highlights from the earnings call
– Yahoo introduced a new ad format called TILEs “with dynamic and interactive features in native video and display.”
– It also launched a content marketing studio called Yahoo Story tellers for native advertising. It will use Yahoo’s editorial expertise, extensive data and Gemini native to create engaging premium content.
– Yahoo sold real estate in Santa Clara which was worth $250 million as part of its sale of non-core assets.
– It will also consider sale of over 4,000 patents from its global portfolio. “As our business has evolved we’ve outgrown the need for certain intellectual property. That portfolio, which we’ve identified and entitled Excalibur, represents a unique opportunity to acquire pioneering patents. Our strategic review committee is overseeing exploration of these options, including the sale of the portfolio as a whole or retaining them,” Mayer added.
– Revenue from the mobile, video, native and social (MAVENs) business stood at $504 million, an increase of 25.68% from $365 million in the same quarter last year.
– Mobile revenues came in at $378 million, a rise of 50% from $252 million in the same quarter last year.
– Revenues from PC increased marginally to $875 million from $872 million in the same period last year.
– Gross search revenue was $765 million for the second quarter of 2016, a decrease of 17 percent compared to the second quarter of 2015.