Yahoo’s profit bolsters takeover defence

  • Results exceed Wall Street analysts’ forecasts
  • Last-minute efforts to fend off Microsoft’s advances

First quarter results from Yahoo came in better than Wall Street expected last night, thanks in part to the internet company’s international operations, but it is understood it will remain in talks with News Corp and AOL to see off the threat of a hostile takeover from Microsoft.The company reported a profit of $542m (£272m) compared to $142m in the previous year, buoyed by a $401m gain in its investment in the parent company of Chinese web business! says it may accept offer from Microsoft
Jerry Yang, the co-founder of Yahoo!, said yesterday that the online search engine may still recommend a hostile takeover from Microsoft after admitting that it had already spent $14 million (£7 million) in fees to advisers such as Goldman Sachs and Lehman Brothers to fight the approach. Toots Its Horn as It Falls Further Behind
Yahoo did just well enough in the first quarter for it to be able to hold its head up high as it tries to justify its continued rejection of Microsoft’s hostile bid. The company’s earnings, after special charges, were 11 cents a share, compared to the 9 cents that analysts had forecast. Its revenue, excluding payments to sites that display its ads, were $1.35 billion, $30 million more than analysts expected. Reports Jump in Profit; Suitor Microsoft Is Unimpressed
Yahoo reported first-quarter results yesterday that surpassed Wall Street’s expectations, but analysts said it might not be enough to fend off an unsolicited takeover bid from Microsoft.

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