With a worse than bad report coming out of its first quarter, Yahoo is struggeling to find ways to stand on its own. In the wake of Oracle/ Sun merge, next large Silicon Valley merge may come very soon. Microsoft who was once considered a no-no in the Valley may look like a saviour!
Here are some coverage tidbits from PCWorld.
“Yahoo had revenue of US$1.58 billion, down 13 percent from the first quarter of 2008 but higher than the $1.20 billion consensus expectation from analysts polled by Thomson Reuters.”
“Meanwhile, net income fell 78 percent to $118 million, or $0.08 per share, compared to $537 million, or $0.37 per share, in the first quarter of 2008, the company said Tuesday. On a pro forma basis, which excludes certain one-time items, Yahoo had net income of $206 million, or $0.15 per share, down 16 percent and 17 percent, respectively, compared to the first quarter of 2008 but exceeding by seven cents per share analysts’ expectation.”
With these bleak numbers, cutbacks will only solve parts of the fundamental problems.
“This time around, Yahoo will let go 5 percent of its staff worldwide. Yahoo ended 2008 with 13,600 employees, so this would mean that about 680 people will be laid off. Yahoo handed out pink slips to about 2,600 employees in two rounds of layoffs last year.”
One may wonder if this is the preparation for a merge with MSFT.
Other coverage on this story can be found at; Yogi, MassMedia Now , Erik Bowman , 24/7 Wall Street
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