Yahoo! victim! of! real! world! economics!
No! hiding! place! in! dotcom! la-la! land!
Yahoo! is feeling the heat from a cooling US economy after it again revised downwards its revenue forecasts for Q1.
The news followed a turbulent day for the yodelling dotcom that saw its plummeting shares suspended amid speculation about the future of the company.
Despite what some commentators thought, Yahoo! didn't announce that it was to be acquired.
Instead, it now expects first quarter 2001 revenues to come in between $170 million to $180 million - a substantial cut on earlier forecasts.
In January, Yahoo! said it expected Q1 revenues of about $220 million to $240 million - less than analyst estimates of more than $300 million.
Yahoo! also announced that Tim Koogle would step down as CEO although he would remain as chairman of the company.
Explaining Yahoo!'s actions, Koogle said: "All businesses in the United States are facing challenging economic conditions that have weakened further in recent weeks, and as consumer confidence and spending has deteriorated, a broad range of customers have delayed their spending across all media formats until their economic outlook improves.
"As a result, we expect revenues and profits to be reduced most significantly in the marketing services area of our business in the first quarter.
"We remain confident that Yahoo!'s strong set of core assets will enable us to manage and execute through this short-term environment and emerge from it even stronger in the long-term," he said.
Anyone interested in the CEO's position should get in contact with recruitment outfit Spencer Stuart & Associates (spencerstuart.com).
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