Tags: Yahoo! | brand | turmoil | YHOO

Yahoo! Brand Uncertain On Turmoil

By    |   Wednesday, 23 Nov 2011 02:23 PM

Internet search and media company Yahoo! (YHOO) seems unable to find a way to grow revenue and profits. It’s a large company in turmoil, and recent events point to an uncertain future for the brand.

Yahoo! is described as a digital media company. The company publishes a large amount of news and other content on its portfolio of websites, and it generates the majority of revenue from ads on company-owned sites and via Yahoo! search results.

Company financial releases note the ownership of 10 No. 1 Internet properties and an additional 11 in the top three of their individual category. The 2011 third quarter earnings release highlights a push toward video offerings from Yahoo!, including company-produced television shows and movies broadcast online.

For the first three quarters of 2011, Yahoo! announced revenue of $3.66 billion, down from $4.8 billion a year earlier. However, the cost of revenue also dropped by almost $1 billion, leaving gross profits for the nine months of $2.55 billion, down 6.5 percent from $2.73 billion. Net income from the period was 58 cents per share, down from 66 cents. For the full year 2011, Yahoo! is forecast to earn 81 cents per share compared to 91 cents earned in 2010.

CEO canned

Many on Wall Street believe Yahoo! will be bought up or parts of the company sold off for cash. The Yahoo! board of directors spurned a $31 per share offer from Microsoft in 2008 and the share price has been well below that level since. The company then fired CEO Carol Bartz, in August 2011, and as of mid-November a permanent replacement had not been named.

Yahoo! ownership positions in Alibaba.com and Yahoo! Japan had listed values of just under $8 billion at the end of the third quarter. The company also had close to $3 billion in cash, leaving the rest of the Yahoo! business and Internet properties valued by the market at $9 billion to $10 billion.

For comparison, competitor Google (GOOG) has a market cap of almost $200 billion. Some investment group or private equity firm may believe that it can generate more value from Yahoo!’s assets.

The analysts at Stifel Nicolaus recently upgraded YHOO to a buy from a hold rating with a target price of $18. Several other Wall Street analysts have cut their target over recent months.

The company next reports on Jan. 17.

© 2017 Newsmax Finance. All rights reserved.

 
1Like our page
2Share
Companies
Internet search and media company Yahoo! (YHOO) seems unable to find a way to grow revenue and profits. It s a large company in turmoil, and recent events point to an uncertain future for the brand. Yahoo! is described as a digital media company. The company publishes a...
Yahoo!,brand,turmoil,YHOO
396
2011-23-23
Wednesday, 23 Nov 2011 02:23 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved