Yahoo shows moderate growth in the last quarter as an independent company
Category: #world  By Shikha Sinha  Date: 2017-04-20
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Yahoo shows moderate growth in the last quarter as an independent company

While surviving its last storms as a standalone company, Yahoo has managed to depict a modest growth over the last quarter. Yahoo! Inc., has already been sold to Verizon Communications, the telecom magnate in 2016, with a deal pricing of USD 4.48 billion. The multi-billion-dollar deal, signed in July 2016, is set to close in around June 2017.

Yahoo, the once-renowned internet mercenary, experienced a massive loss of USD 4.4 billion in the year 2015, following which the company started spiraling downhill. The arrival of the company’s current CEO, Marissa Mayer, in 2012, did not effectuate any significant changes, as was expected to be, except perhaps the purchase of Tumblr by Yahoo for a price of USD 1.1. billion in 2013.

Prior to the deal, two major cyberattacks had been reported to have taken place at Yahoo. The first attack had allegedly taken place in 2013, placing in jeopardy, the personal information of more than 1 billion Yahoo account users. The second cyberattack followed shortly thereafter, in 2014, leading to the theft of more than 50 million Yahoo users. The security breaches resulted in Yahoo paying up an amount of USD 350 million to Verizon at the time of the acquisition, compensating for the data theft. The final pricing thus, came down to approximately USD 4.13 billion.

One of the major reasons Yahoo has been subject to this pitiable market condition, is due to the lack of digital advertising sales, say experts. Additionally, the fact that Yahoo’s rivals, Facebook and Google continued to earn extensively from digital advertising, did not smooth out things for this internet pioneer.

Yahoo has also established its presence across Asia, with a share of more than USD 40 billion in Yahoo Japan and Alibaba. While the former is a joint venture between Japanese magnate SoftBank and Yahoo, Alibaba is a major shareholder in China retail e-commerce software market. Post the aforementioned deal, these stakes will reportedly be turned over into a new company, titled Altaba. Whether Mayer will have a role in the new establishment is yet to be announced.

The matter would have been put to rest until the end of June, had the quarterly earnings for Yahoo not shown up as a surprise. While surviving its last storms as a standalone company, Yahoo has managed to depict a modest growth over the last quarter. The first three months of 2017 witnessed Yahoo portraying a far better growth rate than its last few quarters, say analysts.

Yahoo’s executives were quoted saying that with Yahoo teetering on its last legs as an independent firm, they intended to exhibit the best performance toward the end, to successfully merge with Verizon by June, thus marking the beginning of a new chapter for the fading internet behemoth.

Verizon did not have anything to comment on Yahoo’s current performance. Yahoo’s loyal users though, seem to have a major question in mind: Will Yahoo, as an independent brand fade away?



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Shikha Sinha

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Shikha Sinha

Shikha currently manages content operations for a series of news and business portals including MSF, Algosonline, and the like. An electrical & electronics engineer by education, she has prior experience in content & technology writing, content marketing, market resea...

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