To restore the company’s fortunes in front of decreasing profits, Yahoo has announced to shed around 1,500 jobs that are 10% of its global workforce.

The company reported a 64% slump in third quarter profits. Yahoo announced 54.3million net profit in 3Q, while it was $151.3m in the same period last year.

Yahoo has rejected a buyout offer from Microsoft earlier this year.

These new results from Yahoo are worse than expected, as its revenues increased just 1% compared to $1.79bn (a year earlier).

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Saturday was the last day when Microsoft announced to withdraw its $46billion buyout offer to Yahoo Inc and hence ended months long saga between two internet pioneers. Microsoft further announced that it had no intention to make an unfriendly offer to Yahoo Inc.

In January when the offer was made it valued around $31 per share and on this Friday Yahoo stock ended at $28.67 per share.According to Microsoft CEO Steve Ballmer ‘Yahoo’s demand was illogical and beyond their understanding.

Ballmer narrated in a letter to Yahoo Chief Executive Jerry Yang Yahoo asked $5 billion add in value or minimum an added $4 per share and it led the deal at $37 per share.
Ballmer further described that it wouldn’t be a sensible act if that offer is openly taken to shareholders.

Ballmer also added that a partnership between Yahoo and “the dominant search contributor” as he called to Google would develop a merger that is desirable for a lot of reasons.

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Tick, tick one…… tick, tick two….tick, tick three ……and lo the time has come after three months of glitzy war of words between Yahoo and Microsoft that started after Yahoo’s refusal to Microsoft’s bid for buyout.

Today is the last day of the time limit that Microsoft announced for Yahoo three weeks back to accept its takeover bid or get ready for even more unfriendly bid or a choice to Microsoft to discard the offer completely.On the other hand, Yahoo has rejected Microsoft’s offer many times and has been asking for a more suitable value.

In the current internet scenario Yahoo and Microsoft are not looking competent enough to stay before Google which is taking a lion’s share in online ads and playing the role of a leading player in attaining online ads.Microsoft and Yahoo both are trying their level best to grip the ad market but most of the experts are of the view that it is quite difficult for Yahoo and Microsoft to compete Google separately and only their merger can create a possibility to challenge Google’s authority.

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