Yahoo Releases Fourth Quarter Financial Results

By  |  Tuesday, January 27, 2009 at 4:14 pm

YahooToday, Yahoo shared its fourth quarter financial results with investors, the first financial news it’s had since naming Carol Bartz as CEO. While revenue was relatively flat compared to 2007, Yahoo experienced a net loss of $303 million, compared to a net income of $206 million in 2008, due in part to strategic decisions that obliterated shareholder wealth.

According to the company, operating income was goggled up by a sundry of expenses before the customary subtraction of interest, tax and depreciation:

“restructuring charges of $108 million for severance, facilities, and other restructuring costs; a goodwill impairment charge of $488 million related to our international segment; and incremental costs of $7 million incurred for outside advisors related to Microsoft’s proposals to acquire all or a part of the Company, other strategic alternatives, including the Google agreement, the proxy contest, and related litigation defense (collectively, the “strategic alternatives and related matters”)”.

CFO Blake Jorgensen said that cost management and a Yahoo’s “strong balance sheet” helped it navigate 2008’s financial turmoil, and said that the company was well positioned for more challenging economic conditions. Blake probably wishes that he was on on a beach in Aruba sipping piña coladas instead of offering guidance to investors.

Bartz, meanwhile, told those listening in to Yahoo’s conference call that she didn’t take her new gig to sell the company. But she seemed to tippy-toe around questions of whether part of Yahoo, such as its search business, could be up for sale.

Yahoo made the mistake of turning down Microsoft’s $44.6 billion takeover bid, and now, those who remain have to drink from a muddy well.



1 Comments For This Post

  1. Spot Cool Tech Says:

    I actually really like Yahoo’s sites. But they’ve been a slowly sinking ship for a while now. I hope they merge with some other good company.

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