Dive Brief:
- Yahoo's revenues are continuing to slide, according to Re/code, which obtained copies of documents Yahoo bankers delivered to prospective buyers.
- The information includes financial disclosure documents that sellers provide to potential buyers to allow them to prepare a bid.
- According to Re/code, Yahoo is estimating that its revenue will drop around 15% in 2016 and its earnings will drop more than 20%.
Dive Insight:
Overall, the documents show Yahoo is on a downward slide in nearly ever area.
When it comes to employees, Yahoo reportedly expects to end the year with about 9,000. In 2014, the company had around 12,500 employees. However, stock-based compensation is worth more than $400 million annually now, which is twice what it was a few years ago. According to Re/code, that means CEO Marissa Mayer is using "share grants" to try and get important employees to stay.
Initial bids for Yahoo are due April 11. Verizon Communications Inc., Comcast Corp. and AT&T Inc. have been among the rumored potential buyers. Microsoft has also reportedly been considering a role in the potential purchase of Yahoo's core internet business, holding meetings with investors about contributing to financing.
