Yahoo’s second-quarter earnings report and outlook for the current quarter is a clear indication that the slump in Internet advertising will not soon be over.
“Overall, we’re seeing less fear in the marketplace and advertisers are making plans,” Yahoo Chief Executive Carol Bartz told analysts. But Business Week added it was “just too early” to call a turnaround.
The Internet company said that the poor economy continues to hobble its mainstay online display ads as well as search advertising.
Yahoo also said it will need to make some costly investments in its far-flung online properties, in promoting its brand, and in its advertising systems.
In the second quarter, Yahoo’s net income rose 8%, to $141 million from a year ago.
Yahoo has been in talks for the past year and a half with Microsoft. The likelihood if such a deal is completed is that Microsoft would likely pay Yahoo several billion dollars for Yahoo’s search ad business, according to Business Week.
by David Wilkening
