Yahoo Suffers Significant Drop in Search Revenues
Yahoo has reported a 26% drop in net earnings during the quarter ending 30 September - this marks a fall from $396m (£251m) in 3Q10 to $293m (£185m).
The company attributed the downturn in its search revenues to the search alliance it committed to in the UK during the last quarter, which requires Yahoo to divide their earnings with Microsoft. In addition, it has been plagued with falling display ad revenues.
Tim Morse, Interim Yahoo CEO, described the display ad market as "flat year over year" and "below our expectations". He did add that premium display ad revenues were up year on year, although this was offset by declines in "non-premium display revenue".
He commented: "Let me reiterate what the board has said about its comprehensive strategic review process. The board is actively looking at the full range of options available to return the company to a path of robust growth... when it has something to announce, it will do so. That will take time."
Nevertheless, speculation has been rife over a potential Yahoo takeover by AOL since the last quarter when Yahoo axed its former CEO Carol Bartz.