Yahoo! reports large profits

By DPA

New York : Internet company Yahoo! Corp has got a boost in its negotiations with Microsoft, reporting a tripling in earnings in the first quarter over the same period last year, to $542 million.


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Revenues climbed 9 percent to $1.82 billion, Yahoo! said after markets closed, in a report Tuesday from its headquarters in Sunnyvale, California.

The figures exceeded analysts’ expectations, and share prices climbed 1 percent to $28.80 – a trump card in valuation of the company in the bargain with Microsoft.

Microsoft offered to buy Yahoo! for $45 billion, to fend off the rising dominance of Google in online searches and Internet advertising. Yahoo! has rejected the offer as too low.

An ultimatum from Microsoft for a response from Yahoo! runs out this weekend.

If no deal is reached by then, Microsft is planning a hostile takeover to beat down Yahoo! management’s resistance.

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