According to some of the pages of a "book" given to prospective Yahoo buyers, the company is predicting a decline in profit. This news came on April 6, originally reported by Re/code, which obtained documents from the book. Details show that Yahoo is expecting revenue to drop by 15 percent in 2016, while earnings are predicted to decrease by more than 20 percent.
The "book," as it's being called, is made up of disclosure documents given to buyers as they prepare to make a bid. Re/code reports that interested buyers also have access to protected data, which provides more insight into financial forecasts.
If these numbers are accurate, it would display a continuous drop in revenue for Yahoo, dating back to 2014 when the company made $4.4 billion. In 2015, Yahoo brought in $4.1 billion, and these predictions place the company around $3.5 billion for 2016, if they come to fruition.
Earnings before depreciation, taxes, and amortization would slide from less than $1 billion in 2015 to $750 million in 2016.
Aside from its financial status, Yahoo has recently been in the headlines for its changes at the top. On March 31, the California-based Internet company lost its senior vice president of talent acquisition, Sandy Gould. The former Walt Disney Company recruiting executive had been with Yahoo for approximately three years before he left. Gould did not specify other endeavors he would be pursuing after leaving the company.
"I have decided to leave Yahoo," Gould said in a statement. "It's time to take a break and decide my next adventure. I have had an amazing experience working for Yahoo. It has been transformational and I have loved the learning, mission, people, and the opportunity to work with Marissa."
Ahead of Gould's departure, Yahoo announced several product discontinuations on March 11, looking ahead to the remainder of the first quarter. Yahoo Games, Yahoo Livetext, and Yahoo BOSS are all slated to be discontinued. Some of Yahoo's regional media properties will also be closed, such as Yahoo Astrology and Yahoo Maktoob.
"During our last earnings call, we outlined a plan for simplifying the business and focusing on our strengths across seven core consumer products: Mail, Search, Tumblr, News, Sports, Finance and Lifestyle," said Amotz Maimon, Yahoo chief architect. "Over 1 billion people come to Yahoo each day, and we are dedicated to providing them with the best experience possible."
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