Yahoo Q3 Earnings Solid, Says It’s Still Prepping For Verizon Takeover
Yahoo earnings bumped up in after-hours trading following a third-quarter 2016 earnings report that saw revenue top analysts’ expectations. The beat comes amid uncertainty over Verizon’s proposed $4.8 billion deal to acquire Yahoo’s web assets following the disclosure of a massive data breach back in 2014 that impacted as many as 500 million email accounts.
Total revenue for Q3 was $1.31B, a 6.5% jump year-over-year, Yahoo reported today. Revenue was down from $1B a year ago to $857.7M. The company showed revenue gains in its mobile, video, native and social (Mavens) business as well as search.
“I am pleased with our Q3 results,” Yahoo CEO Marissa Mayer said in a statement (the company declined to hold the usual post-earnings call with analysts, citing the pending Verizon deal).
She added: “In addition to our continued efforts to strengthen our business, we are busy preparing for integration with Verizon. We remain very confident, not only in the value of our business, but also in the value Yahoo products bring to our users’ lives. To that end, we take deep responsibility in protecting our users and the security of their information. We’re working hard to retain their trust and are heartened by their continued loyalty as seen in our user engagement trends.”
On Friday, Verizon general counsel Craig Silliman told reporters that the hack could have material impact on Yahoo’s value. Earlier this month, Yahoo investors seemed unmoved to similar media report that said Verizon wanted to slash $1 billion from its $4.83B sale price. But more than 60% of Yahoo’s stock value comes from its investments in Alibaba and Yahoo Japan, which are not included in the sale.
Verizon shares are down fractionally after hours today.
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