Yahoo reports lackluster results as sale looms

In what could spell more trouble for CEO Marissa Mayer, Yahoo's latest earnings report on Monday showed a 19 per cent fall in revenue for the company from a year earlier.

Based on Yahoo's Q2 Financial Report published Monday in the U.S., the widening loss is due to the increasing operational loss which cost the company US$490 million (AU$646 million) from $45 million (AU$59 million) a year ago. The company beat analysts' sales expectations of $1.08 billion in sales but missed earnings-per-share expectations by a cent.

Yahoo reported that revenue has risen 5% to $1.3 billion.

The earnings report could be the last for Yahoo - as well as for Mayer, who may lose her job if a deal to sell the company is clinched.

Yahoo's board was also widely expected to discuss the ongoing speculation over the company's looming future during the accompanying analyst call but little further insight was given as to the resolution of the ongoing bidding process.

Telcos Verizon and AT&T, groups led by private-equity firms including one with TPG Capital, and a consortium pairing Quicken Loans' Dan Gilbert and investor Warren Buffett are believed to have stayed in the running to buy Yahoo's core media assets.

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CEO Elon Musk has also set the ambitious goal of producing 500,000 cars per year by 2018 , rather than 2020 as originally stated. Tesla made its surprise offer to buy the residential solar leader in a stock swap valued at roughly $2.7 billion.

While Mayer originally planned to spin off Yahoo's stake in Chinese firm Alibaba, that idea was binned to make room for the internet sell off. Yahoo has also said it could spin off the business. In the third quarter of 2012, Mayer's first full quarter at the company, Yahoo reported an 11 percent increase in revenue for the year and the stabilization of display revenue after months of sharp decreases.

Yahoo has a mixed history with purchasing hot internet properties, with its $3.56 billion purchase of Geocities in 1999 ending with it shutting down, and social bookmarking site Delicious eventually leaving Yahoo to land in the hands of YouTube founders Chad Hurley and Steve Chen.

Yahoo's CEO, Marissa Mayer, has repeatedly cited Mavens as the company's new growth engine.

After the Tumblr write-down, the company posted a net loss of $439.9 million compared with a loss of $21.6 million a year earlier. Money notes that Yahoo has now written down about half the value of its original investment in Tumblr, "rendering [CEO Marissa] Mayer's biggest acquisition to date effectively worthless". Including, "substantial progress towards potential strategic alternatives for Yahoo".

In April, Yahoo averted a proxy battle for control of the company with a compromise that added four new board members, including a hedge fund chief who has been critical of management.

Yahoo! fell short of already-low expectations as the shriveling internet icon continues to limp towards its impending sale.

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