Yahoo earnings beat expectations on cusp of Verizon merger

April 19, 2017
Yahoo posted profit of $99 million in the first three months of this year on revenue of $1.3 billion, as compared to posting a loss on $1.09 billion in revenue in the same period last year

Yahoo on Tuesday reported quarterly earnings that topped expectations as the pioneering internet firm remained on track to be bought by Verizon.

Yahoo posted profit of $99 million in the first three months of this year on revenue of $1.3 billion, as compared to posting a loss on $1.09 billion in revenue in the same period last year.

The California-based company said that it was continuing to work with Verizon on integrating Yahoo's core internet operations into the US telecommunication giant.

AOL and Yahoo will be combined into a unit called "Oath" after being bought by telecom titan Verizon, according to word put out early this month by AOL chief Tim Armstrong.

A price cut early this year kept Verizon on track to consummate the purchase of Yahoo's internet business, and share the costs from a pair of epic hacks that threatened to derail the deal.

Yahoo slashed the price of its core internet business by $350 million.

Under revised terms of the delayed deal, Verizon's purchase of Yahoo assets will total $4.48 billion.

Yahoo announced in September that hackers in 2014 stole personal data from more than 500 million of its user accounts. And in December it admitted to another cyber attack from 2013 affecting more than a billion users.

The deal with Verizon will end Yahoo's run of more than 20 years as an independent company.

Yahoo is selling its main operating business as a way to separate that from its more valuable stake in Chinese giant Alibaba, which will become a new entity, to be renamed Altaba, Inc., and will act as an investment company.

Yahoo boasted having more than a billion users monthly in 2016.

Yahoo chief Marissa Mayer will quit the company's board after the merger with Verizon that creates Oath, according to an SEC filing, though she is expected to remain with the core Yahoo business.

"As we enter our final quarter as an independent company, we are committed to finishing strong and planning for the best possible integration with Verizon," Mayer said in the earnings release.

"With the transaction anticipated to complete in June, I've never been more proud of the improvements we've made to the ."

Yahoo shares remained flat at $47.56 in after-market trades that followed release of the earnings figures after having ended the official trading day up less than half a percent.

Explore further: AOL plus Yahoo to equal new Oath

Related Stories

AOL plus Yahoo to equal new Oath

April 4, 2017

AOL and Yahoo will be combined into a unit called Oath after telecom titan Verizon buys the pioneering internet firm, according to a tweet Monday by the AOL chief.

Yahoo names post-spinoff management team

March 13, 2017

Yahoo said Monday that board member and former internet executive Thomas McInerney would lead the business that remains after the sale of its core assets to Verizon is completed.

Yahoo quarterly profit more than doubles

October 18, 2016

Yahoo beat expectations on Tuesday with quarterly earnings that showed profit more than doubled to $163 million despite only a slight rise in revenue.

Recommended for you

Physicists reveal why matter dominates universe

March 21, 2019

Physicists in the College of Arts and Sciences at Syracuse University have confirmed that matter and antimatter decay differently for elementary particles containing charmed quarks.

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.