Yahoo makes $99m loss in first quarter

Yahoo chief executive Marissa MayerImage copyright
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Yahoo chief executive Marissa Mayer has faced criticism over a failure to turn around the firm

Yahoo has reported a $99m (£69m) quarterly loss, as the company reviews “strategic alternatives” that involve courting potential buyers.

The internet firm saw revenues fall 11.6% to $1.08bn in the January-March period from the quarter last year.

However, the revenue fall was better than analysts’ expected, and Yahoo’s shares rose in after-hours trading on Wall Street.

In February, Yahoo said it was looking for buyers for its core internet arm.

The deadline for potential bids was Monday.

In a statement Yahoo’s chief executive Marissa Mayer said: “Our 2016 plan is off to a solid start as we continue to focus on driving efficiency, lowering costs, and improving long-term growth.

“In tandem, we made substantial progress towards potential strategic alternatives for Yahoo.”

Verizon, YP Holdings – formerly – and private equity firm TGP have all expressed an interest. And the owner of the UK’s Daily Mail newspaper is also considering a bid in partnership with other parties.

Continuing to struggle

Over the last few years Yahoo has struggled to keep up with the changing internet advertising landscape, with some analysts arguing that it has failed to remain relevant in many of its core markets.

Investors have been disappointed with Ms Mayer’s inability to secure a turnaround for internet firm.

Activist investor Starboard Value has proposed replacing Yahoo’s entire board of directors.

Yahoo announced that it was looking for potential buyers for its core businesses after plans to sell its stake in Chinese e-commerce giant Alibaba fell through.

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