Yahoo Posts Profit Ahead Of Verizon Takeover
Yahoo has reported a profit of US$99 million for the first quarter of 2017, up from a loss of US$99 million in the same period last year.
Revenue for the quarter grew by 22% to US$1.33 billion, driven by a 36% rise in revenue from mobile, video and native advertising (including ads on Yahoo-owned Tumblr and Polyvore) to US$529 million.
“As we enter our final quarter as an independent company, we are committed to finishing strong and planning for the best possible integration with Verizon,” said Yahoo CEO Marissa Mayer.
“With the transaction anticipated to complete in June, I’ve never been more proud of the improvements we’ve made to the business and the value we’ve delivered to our shareholders,” Mayer added.
Verizon will merge Yahoo’s search, email and content business with AOL under a new brand called ‘Oath’ when the takeover is finalised, and Yahoo will continue to hold its remaining assets, including stakes in Alibaba and Yahoo Japan, under the name Altaba.
In a filing last month, Yahoo said Marissa Mayer could receive a severance package of US$23 million when she loses her position as CEO. The payment is dependent on Mayer being fired without cause.