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Wednesday, 18 April 2012 - Yahoo shows signs of life, Alibaba in the cards again |
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Obama's return uses none of the controversial (but perfectly legal) elements of the tax code.   Read more at Counterparties   Income inequality scholars call for higher taxes JPMorgan CEO's pay equal to 67 bankers Follow Reuters Facebook Twitter RSS YouTube Read Afghan schoolgirls poisoned in anti-education attack 17 Apr 2012 Human-made earthquakes reported in central U.S 17 Apr 2012 Kansas wind erosion laboratory blown away 12 Jun 2008 Special Report: Tax time pushes some Americans to take a hike 16 Apr 2012 Warren Buffett has prostate cancer, sees no danger 17 Apr 2012 Discussed 147 Trayvon Martin’s killer showed signs of injury: neighbors 136 Obama paid 20.5 pct tax rate in 2011: White House 106 North Korea launches rocket amid international condemnation Watched Shuttle Discovery piggybacks over U.S. capital Tue, Apr 17 2012 Police run over citizens during protest Tue, Apr 17 2012 Norway killer calls attack "sophisticated and spectacular" Tue, Apr 17 2012 Pictures Reuters Photojournalism Our day's top images, in-depth photo essays and offbeat slices of life. See the best of Reuters photography.  See more | Photo caption  Discovery's last flight Space shuttle Discovery took off on its final voyage to the Smithsonian Museum.  Slideshow  Syrian uprising A look inside Syria as mass protests give way to rebellion.  Slideshow  Yahoo shows signs of life, Alibaba in the cards again Tweet Share this Email Print Related News Yahoo shows signs of life, Alibaba in the cards again Tue, Apr 17 2012 Intel revenue forecast beats, but stock falls Tue, Apr 17 2012 Wall Street rallies on earnings, Europe helps Tue, Apr 17 2012 Google stock drops 4 percent as advertisement rates fall again Fri, Apr 13 2012 Exclusive: Starboard's activism turning off some AOL investors Fri, Apr 13 2012 Analysis & Opinion Counterparties: Why Facebook bought Instagram No hard landing for Chinese real estate Related Topics Tech » Hot Stocks » Asian Markets » Media » Yahoo Inc. offices, housing its Search Marketing Group, are pictured in Burbank, California, in this October 14, 2010 file photograph. Yahoo Inc said it earned net income of $286 million, or 23 cents a share, in the first quarter. The Internet company reported net revenue, which excludes fees paid to partners, of $1.077 billion, compared to $1.064 billion in the year-ago period. Credit: Reuters/Fred Prouser/Files By Alexei Oreskovic SAN FRANCISCO | Tue Apr 17, 2012 8:49pm EDT SAN FRANCISCO (Reuters) - Yahoo Inc reported an uptick in revenue that marked its first quarterly sales growth in three years, as new Chief Executive Scott Thompson outlined his plan to revamp the struggling Web company. Citing moves to shut down dozens of underperforming online properties, while making online commerce and mobile products a bigger part of Yahoo's business, Thompson described "the first steps" to regain market share from online rivals and revive the company's growth. "I'm convinced that we don't need to reinvent who we are," Thompson said during a conference call with analysts on Tuesday. "But I'm equally convinced we absolutely do need to reinvent the experiences our users have with the marquee properties that bring them to Yahoo every day." Thompson also said that Yahoo was once more exploring ways to "monetize" some of its stake in China's Alibaba Group. Shares of Yahoo increased 2.7 percent to $15.41 in after hours trading on Tuesday. The comments marked the most extensive details Thompson has provided about his strategy since taking the top job at Yahoo in January. But the former PayPal president faces a high wall of skepticism from investors who have watched several failed attempts to restructure and revitalize the one-time Web pioneer in recent years. Carol Bartz, Thompson's immediate predecessor, was fired over the phone in September. "I didn't hear anything particularly aggressive or transformative in what he said," said Macquarie Research analyst Ben Schachter. "While Scott has a great track record, the company itself has done many of these things," in the past, Schachter said. Yahoo said its net income grew 28 percent in the three months ended March 31 to $286 million, or 23 cents a share, outpacing Wall Street expectations of 17 cents a share. Much of the increase in quarterly profit came from Yahoo's earnings in equity interests, which more than doubled year-on-year and comprise mainly its investments in Alibaba as well as Yahoo Japan. "Their minority stake in their investments is generating more profit than their core business," said BGC Partners analyst Colin Gillis. ASIAN TALKS Yahoo's plans for its Asian assets are being closely watched by investors, many of whom have argued that Yahoo should sell all or part of its holdings in the companies. Thompson told analysts that Yahoo was exploring a simpler deal to try and "monetize" its 40 percent slice of China's Alibaba, a stake valued at billions of dollars and that Yahoo once discussed unloading in a complex tax-efficient transaction. Thompson did not elaborate, but his comments suggest the company -- which broke off deal talks with Alibaba and Softbank last year -- was willing to go back to the negotiating table. He said that returning cash to shareholders, in the event of such a deal, would be at the "top of the list" of priorities. Thomson also noted that plans to monetize its stake in Yahoo Japan, underway for more than a year, have been beset by a "valuation gap" which the parties have failed to "bridge." As a result, Thompson said, Yahoo was now focused on talks with Alibaba. Yahoo's partnership with Microsoft Corp is also a work in progress. The 10-year search deal that the two companies entered into in 2009 has not performed up to expectations. Thompson said he was personally working with Microsoft Corp to improve the payoff from the companies' 10-year search partnership, which has not lived up to expectations. Even so, Yahoo said that better-than-expected performance for its search ads helped the company increase its quarterly net revenue year-on-year for the first time since the third quarter of 2008. Yahoo's core display advertising business declined 4 percent during the first quarter. The company's net revenue, which excludes payments to partners, totaled $1.077 billion in the first quarter, compared to $1.064 billion in the year-ago period. Analysts polled by Thomson Reuters I/B/E/S were looking for net revenue of $1.06 billion. It forecast net revenue in the second quarter of between $1.03 billion and $1.14 billion. Once one of the Web industry's pioneering companies, Yahoo has seen its growth stunted in recent years amid competition from Google Inc and Facebook. Thompson, the former president of PayPal who took the reins in January, announced plans this month to lay off 14 percent of Yahoo's staff and reorganize the management structure. Thompson said on Tuesday that Yahoo is shutting down or "transitioning" roughly 50 properties that do not contribute meaningfully to user engagement or revenue. As part of the reorganization, Thomson created a new "commerce" group which will initially consist of existing Yahoo online properties such as real estate and auto listings. But analysts said Thompson was short on details on the commerce group, as well as on plans to bolster Yahoo's efforts in mobile. Mobile is viewed as a critical area for Web companies, as consumers increasingly access the Internet from wireless devices such as smartphones and tablet PCs. Earlier this month, Facebook announced a $1 billion deal to acquire Instagram, a mobile photo-sharing apps. "If you have a company out there that's paying a billion dollars for a mobile app and you have Google going after Android and Motorola...what's Yahoo's whole play on this?" said Susquehanna Financial Group analyst Herman Leung. "It's still a wait and see story," Leung said of Yahoo. (Reporting By Alexei Oreskovic; Editing by M.D. Golan and Sugita Katyal) Tech Hot Stocks Asian Markets Media Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.   Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Connect with Reuters Twitter   Facebook   LinkedIn   RSS   Podcast   Newsletters   Mobile About Privacy Policy Terms of Use AdChoices Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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