Microsoft may have to up its offer for Yahoo after the search giant posted strong revenues today.
“As outlined in our investor presentation, we believe we can significantly accelerate our revenue growth,
return to our historically high margins, and double our operating cash flow by 2010. This quarter’s solid
performance underscores the fact that we are executing on that plan. Yahoo! is beginning to realize the
benefits of the very substantial and deliberate long-term investments we’ve made to capitalize on
the opportunities ahead in display and to recapture momentum in search,” said Jerry Yang, co-founder and
chief executive officer, Yahoo!
Revenues were $1,818 million for the first quarter of 2008, a 9 percent increase compared to $1,672
million for the same period of 2007.
Operating income before depreciation, amortization, and stock-based compensation expense for
the first quarter of 2008 includes incremental costs of $14 million incurred for outside advisors
related to Microsoft’s unsolicited proposal, other strategic alternatives, and related litigation