Yahoo reported a net loss of $303 million, or 22 cents a share, compared with a profit of $206 million, or 15 cents a share, a year ago. Yahoo said it incurred $108 million in charges related to severance of employees and $488 million in write-downs of some of its European assets. [REFERENCE]
The original king of the search engines, Yahoo is getting battered even more. When Microsoft wanted to buy Yahoo the decision was a big NO. Now, from Yahoo’s perspective, that sale would have been the best decision possible. With the stock a mere fraction of the value it was last year Yahoo has a lot of rebuilding to do. If rebuilding is possible at all with all the competition. The main competition is Google. One advantage Yahoo has is advertising on its homepage. Google has always had a simple homepage with no advertisements. Nor has Google provided the various tidbits of information Yahoo is famous for on its homepage. I still believe in Yahoo as a good product, and although there is a tremendous amount of competing search engines the main power of Yahoo comes from its history; it was the first. I don’t think Yahoo will sell; especially at the low price its at. I think they will try and rebuild to some degree, and then maybe in the future a sale is possible. For now they will remain a separate entity try to expand on the territory they they still control.