Re/code: Yahoo's Financial 'Meltdown' Is Becoming Increasingly Dire

by Jayson Derrick

April 6, 2016 2:53 PM | 1 min read | Make a Comment

Yahoo! Inc.YHOO

's financial situation is "increasing dire," at least according to a

report by Re/code. Re/code's Kara Swisher stated that she obtained access to the "book" that Yahoo's bankers are handing out to potential buyers. Naturally, this book contains the necessary information that a potential buyer requires before submitting a binding bid. Swisher stated that the book "shows a company in what appears to be serious free fall." She continued that the book shows that Yahoo is expecting its revenue to fall close to 15 percent and earnings by over 20 percent in 2016. At the same time, Yahoo's expenses are indeed declining, but not nearly enough to offset the "troubling landscape." Swisher also added that she spoke with several potential buyers of Yahoo's internet assets who found the book to be "confounding" because the company "shifted around everything so much that it is not easily clear what is making money and what is not." For example, Yahoo moved some of its search staff costs into research. However, despite the confusing and scary nature of Yahoo's book, everyone that Swisher spoke to plans on making some sort of bid. Yahoo is still "one of the biggest properties on the Web and it is hard to be able to buy that kind scale easily." "It's like a a dilapidated house in Silicon Valley — you walk in and are overwhelmed by the work that needs to be done and how bad it has gotten," a potential buyer told Swisher. "But then it's in a good neighborhood, the market is nuts and there's not many like it anymore, so you have to hope you can fix it."

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Posted In: Media Kara Swisher re/code Yahoo Asset Sales

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