The dramas at Yahoo! just seem to be going from bad to worse! Second quarter earnings for the company just released show their total revenue dropped 13% to just 1.5 billion.
When you compare this to Google, whose total revenues actually rose 3%, this is not good news for Yahoo!
Add to this the news that Microsoft merger talks are back on, with Microsoft in a much stronger position courtesy of Bing, and then things look disastrous for Yahoo!
Of interest to us was Yahoo!’s search advertising revenues on Yahoo!-owned sites which declined by 15%, while display advertising decreased by 14%. Seems advertising just isn’t working for them!
Here is a breakdown of Yahoo!’s 2nd quarter revenue:
Even though things aren’t looking great for Yahoo!, their CEO Carol Bartz was full of praise for the company and the results they posted.
I’m pleased with our results this past quarter. We established a clear, simple vision to be the center of people’s lives online, and we’re backing that vision with important initiatives to create ‘wow’ experiences for our users.
She even went so far as to praise the newly launched Microsoft search engine, Bing:
I actually think Bing is a good product. I think they’ve done a good job, but unfortunately they are only a month into it. I think Microsoft should be given kudos for Bing.
Judging by these recent earnings figures, do you think Yahoo!’s best option would be to take a deal with Microsoft? Feel free to share your thoughts below.