Yahoo Q3 income dips 26 pct on lower ad sales

For the current quarter,Yahoo expects revenue in the range of USD 1.28 billion to USD 1.4 billion. The company also projected income from operations between USD 200 million and USD 260 million for the fourth quarter.

The company attributed the revenue fall mainly to 8216;the required change in revenue presentation related to the search agreement and the associated revenue share with Microsoft8217;.

Yahoo,which had entered into a search tie-up with Microsoft as part of efforts to streamline its operations,has so far not benefited much from this partnership.

Yahoo continued to witness decline in display-ad sales,which includes graphical,interactive and video ads on its various internet platforms. The display revenue stood at USD 449 million in the quarter,almost flat as compared to USD 448 million for the year-ago period.

The internet firm has been struggling to increase its market share and the company recently sacked Carol Bartz as its CEO,presumably after failing in market gaining efforts.

According to media reports,private-equity firms such as Silvern Lake Partners are considering bidding for Yahoo. Besides,Chinese internet company Alibaba Group8217;s head Jack Ma was reportedly said that he was 8220;interested8221; in buying Yahoo.

Last month,an internal memo sent by Yahoo chairman Roy Bostock and co-founders David Filo and Jerry Yang to their employees had sparked rumours about a possible sale of the Internet company.

In the memo,the top executives said that a 8220;strategic review8221; process was on to bring the company back to robust growth path and multiple parties have 8220;expressed interest in a number of potential options.8221;

However,they did not specify the 8220;potential options8221;,neither did they name the 8220;multiple parties8221; which had evinced their interest in the company.