AILING INTERNET PORTAL Yahoo has hinted that its partnership with
Microsoft is partly to blame for a 24 per cent drop in revenue and a
28 per cent fall in net profit.
Yahoo brought in $1.2 billion (£733 million) in revenue for the first
three months of the year, nearly a quarter drop from the same period
last year, while net profit came in at $223 million (£136 million),
well short of the $310 million (£189 million) it earned last year.
Yahoo's CEO, Carol Bartz indicated that revenue won't increase to the
level it was before the Microsoft deal until the end of the year,
according to the BBC, suggesting that the partnership might have had
an adverse effect on the company's financial results.
Yahoo teamed up with Microsoft last year to power web searches with
Microsoft's Bing search engine, an effort to steal back lost market
share from rival Google.
Now that partnership is effectively on hold, with Yahoo saying that it
has so far failed to pay off.