Yahoo’s Fourth Quarter Revenue Forecast Far Below Expectations; Signs Advertising Deal with Google

Yahoo’s Fourth Quarter Revenue Forecast Far Below Expectations; Signs Advertising Deal with GoogleOn Tuesday, Yahoo Inc. said that it has signed a search advertising deal with Google Inc. It is expected to provide some support to Yahoo's current president and CEO Marissa Mayer's efforts in turning around the company that reported earnings as well as revenue lesser than the market expectations.

In the deal struck with Google, which is a unit of Alphabet Inc the existing search partnership Microsoft Corp will strengthen, under which Yahoo earns a certain percentage of revenue generated from the adverts that are displayed on its sites.

Yahoo shares dropped 1.6 percent during the after-hours trading. It also said that the companies have decided to postpone implementing the deal in the U. S to permit reviewing by the Department of Justice's antitrust division.

According to Yahoo it expects fourth-quarter revenue of $1.16 billion-$1.20 billion that is much below the analysts' average estimate of $1.33 billion.

This is Mayer's fourth year as a chief executive with the company and she said the forecast was "not indicative of the performance we want." She also added, "We are also experiencing continued revenue headwinds in our core

(advertising) business, especially in the legacy portions."

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