Yahoo On Rough Track: CTO Steps Down And Q3 Revenue Dips – Future Uncertain !

Must Read

Hands-Free Resources: How Businesses Are Using AR to Make Workplaces Safe and Productive

The role of efficiency and ease in the modern world has become forefronted when it comes to technology, particularly...

Top Countries by App Downloads Q2 2021: India Dominates With 7 Billion+ Downloads [REPORT]

As the adoption of smartphones and the Internet has increased over the last decade, so has the number of...

3 Most Common Mistakes Social Media Marketers Are Committing In 2016

In their quest for greater sales and increased ROI, the self-appointed “digital marketing guru” has lost touch with what...

Yahoo is going through a rough patch of track; its constant dealing unwelcome situation after it denied Microsoft $44.6 billion buyout offer back in 2008. Post to that then CEO Jerry Yang had to resign and few months earlier Yahoo also fired Carol Bartz – replacement of Jerry. Today company has received two shocking news; its CTO Raymie Stata has stepped down and, second, its revenue has dipped 24 percent. Yahoo has announced that its revenue and revenue costs both are down and GAAP revenue has declined 24 percent year over year. One of the most important reasons for such setback is Yahoo search agreement with Microsoft. As per the agreement, both the companies will bear the equal cost – which is required to run the Yahoo search – under the alliance. However when we take in care of this quarter earning, $4 million is reimbursed from Microsoft. Where as the total cost on Yahoo’s end was more than $ 150 million which had crossed the limit of reimbursements, set at the time of deal.

 “We have a better product planning process in cycle,” said Tim Morse interim chief executive.

Below points are enlightening Yahoo’s third quarter financial report for 2011:

  • Revenue of Yahoo excluding traffic acquisitions costs is $1,072 million, decline by 5 percent compared to third quarter of 2010, which was $1,124 million.
  • Company’s Generally Accepted Accounting Principle (GAAP) revenue also slumps down by 24 percent to $1,217 million compared to $1,601 million in Q3, 2010.
  • Yahoo income from operations is also down by 6 percent $177 million compared to $189 million in Q3 of 2010.
  • Company net earning also wad down by 26 percent to $293 million compared to $396 million in Q3, 2010.
  • Yahoo net earning per diluted share was also down by 21 percent to .23 cents compared to .29 cents in Q3 of 2010.

Few days before, Microsoft has reported to reconsider its deal to buy Yahoo. However, there are many other companies who are showing interest to pocket Yahoo this time – if it’s put on Sale. One of the hot-shot names in the list of buyers is Alibaba, whose 40 percent shares are already owned by by Yahoo, bought in 2008.


Ash Munshi has replaced Raymie State as new Chief Technology Officer of Yahoo. Raymie Stata has served for a year and five months as CTO. He was with the company since 2004 and served on several architectural platforms.

On the Appointment of New CTO, Yahoo spokesperson said, “Ash has a well-established career managing successful global technology organizations at the most senior level with a laser focus on meeting and exceeding customer needs.”

Yahoo stocks take a dip of 1.43 percent after the announcement of its revenue and CTO crunch.

We hope Yahoo should soon be back to profit and performance and resolve all discouraging issues. Do you think an advice from you can help Yahoo to overcome all the problems? Let us know in comment section.



Please enter your comment!
Please enter your name here

Latest News

Apple Is Slowly, But Steadily, Winning India Market: Records Double-Digit Growth In Q2 2021

Looks like the strategy to launch multiple variants of the iPhone 12 series is helping Apple to strengthen its...

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded and unparalleled...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter, with a...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one of the...

More Articles Like This