Last Monday, Yahoo Inc. posted a huge loss in profit, possibly affecting any buyer to their business. Since the announcement, there is still no potential buyer up to this day.
Yahoo is now having a harder time acquiring a buyer for their internet business that has statistically been slowing down. Just last Monday, Yahoo announced its earnings fell by 19 percent in the second quarter.
Ever since Yahoo has appointed a new CEO, Marissa Mayer, this has been the company's sixth decline in the span of seven periods. Mayer was appointed as Yahoo's CEO just four years ago and its loss already increased to $439 million. The company's expenses rose to 40 percent due to Tumblr, which Yahoo bought back in 2013 for $1 billion, according to Wall Street Journal.
However, despite the charge caused by Tumblr, Yahoo's costs could still have risen to 9 percent. In spite of this, Yahoo has reported a $60 million rise in revenue due to its core internet business. There have been potential buyers eyeing Yahoo. One of them is Verizon, a huge telecom business that recently bought AOL as well.
Another potential buyer is are AT&T and its partnership with the funders of Quicken Loans, Dan Gilbert and Warren Buffett. Reports say that Yahoo could possibly announce a buyer already by the end of this month, as reported by BBC News.
Yahoo's CEO, Mayer, initially planned a spin-off for Yahoo last year however the board decided on selling it instead. Hence, she kept focus on increasing the company's growth and lowering its cost. This resulted to the company cutting its' global workforce by 15 percent.
It has been years since Yahoo's future has been put on a spotlight. Despite the visible loss in profit, Mayer still made progress in keeping the company standing. However, the company is still about to be bought already soon.
