Yahoo profit beats Wall St, some analysts worry over effect of hack

Yahoo profit beats Wall St, some analysts worry over effect of hack

This was higher than $145.74 million, or $0.15 per share, in last year’s third quarter. The number of mail messages sent and read, as well as the number of page views, rose slightly since Yahoo’s announcement on September 22 that user data from 500 million accounts were stolen in a 2014 breach that the company only recently discovered, the company said.

After subtracting Yahoo’s advertising commissions, revenue was 857.7 million dollars (£697.8 million), falling short of Wall Street forecasts. Yahoo Search is a search engine that serves as a guide for users to discover the information on the Internet. The deal, which at the time appeared to be cut and dried, was thrown into uncertainty when Yahoo revealed last month it had suffered a massive data breach in 2014. And she said that if Verizon can show the scandals have cost Yahoo a sizable chunk of users, Verizon will be “definitely asking for a bigger break than a billion dollars”. After the close of markets, Yahoo instead issued its report and a statement from Chief Executive Marissa Mayer [pictured above], who said the company is “busy preparing for integration with Verizon“, and it remains “very confident, not only in the value of our business, but also in the value Yahoo products bring to our users’ lives”.

Still, analysts were split on whether the results dispelled doubts about the deal going through.

If there was an upside, Gordon said, it was that the results are “not enough to kill the Verizon deal, if the data breach doesn’t kill it”.

Version said it could have a “material impact” on the plan to buy the company and could lead to a possible dissolution of the deal or renegotiation on price.

In a “financial highlights” document Yahoo released Tuesday, the firm raised the possibility that the pending sale could fall through because of risks including “the inability to obtain or delays in obtaining approval of Yahoo’s stockholders, necessary regulatory approvals … or satisfaction of other conditions to the closing of the transaction”.

Yahoo is still investigating the circumstances underlying its security breakdown. Jefferies Group reaffirmed a “buy” rating and issued a $43.00 price objective on shares of Yahoo in a research report on Monday, July 25th.

On the company’s financial health, Yahoo! reported $0.20 EPS for the quarter, beating the analyst consensus estimate by $ 0.06 according to the earnings call on Oct 18, 2016. In response to the reports, Yahoo described itself as a “law-abiding” company.

Verizon has tremendous leverage”, Melsheimer said. The current price dropped -2.93% from the average market prices over a 50-day period.

The deal would transform Yahoo into a holding company, with a 15 percent stake in Chinese e-commerce company Alibaba Group Holding Ltd and a 35.5 percent interest in Yahoo Japan Corp as well as Yahoo’s convertible notes, certain minority investments and its non-core patents. The stock has fallen by about 5 percent since news of the security breach broke.

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