[HPFGU-OTChatter] Interesting Yahoo news

[John Walton]

Here's what happened to Yahoo -- fortunately, it's not as bad for us here at
YahGroops as a takeover bid would have been. Phew! At worst we can probably
expect to see a few more ads...

--John

http://news.bbc.co.uk/hi/english/business/newsid_1207000/1207934.stm

Yahoo earnings hurt by fewer ads


Yahoo, the internet giant, has issued earnings predictions for the first
quarter of 2001 sharply below what analysts had predicted.

"Yahoo now expects first quarter 2001 revenues will be in the range of
$170-180m," the company said in a statement.

Analysts had forecast revenues of around $232m.

The downgrade of its earnings predictions was due to weaker advertising
earnings, caused by reduced marketing spend by firms worried about an
economic slowdown in the US and elsewhere in the world.

Advertising revenue accounts for about 90% of the company's earnings.

New chief executive

Yahoo also announced that its founder Timothy Koogle will step down from the
post as chief executive, though he will remain chairman of the board.

This means he will take a step back from the day-to-day control of the
business. 

His replacement has not yet been found and the company will start searching
for one right away.

Shares suspended 

Preceding the announcement, Yahoo shares were suspended in early trading on
Wednesday. 

Ahead of the suspension, the company's share price fell 6.3% to just less
than $21. 

A year earlier, one Yahoo share was worth $205.

The managing director of Yahoo Europe, Fabiola Arredondo, and the head of
its Asian operations, Savio Chow, both resigned recently.

The departures were seen as a double blow for Yahoo.