Sign in with
Sign up | Sign in

Yahoo Loses Lawsuit, Ordered to Pay $2.7 Billion

By - Source: Yahoo | B 20 comments

Firm pledges to "vigorously" appeal the ruling.

A Mexican court has ordered Yahoo to pay $2.7 billion to a pair of companies due to an alleged breach of contract in regards to a yellow pages listings service.

Both Worldwide Directories S.A. de C.V. and Ideas Interactivas, S.A. de C.V. claim a breach of contract, breach of promise and lost profits. Yahoo, however, says that the the aforementioned claims have been made without merit. The firm stated that it will pursue all appeals aggressively.

Following the release of the judge's ruling, Yahoo shares decreased by 1.5 percent to $18.49 in after-hours trading. Should the internet company's appeals ultimately fail, it'll be a considerable set back for the once dominant website. The firm's most recent quarter posted revenue of just $1.2 billion.

During the February of 2008, Microsoft made a bid to acquire Yahoo for $44.6 billion. However, the latter formally rejected it, claiming it "substantially undervalues" the company.

Contact Us for News Tips, Corrections and Feedback          

Discuss
Ask a Category Expert

Create a new thread in the Streaming Video & TVs forum about this subject

Example: Notebook, Android, SSD hard drive

This thread is closed for comments
Top Comments
  • 16 Hide
    daimerous , December 3, 2012 10:06 PM
    Who is this Yahoo that you speak of???
  • 13 Hide
    cruiseoveride , December 3, 2012 10:16 PM
    $44.6 Bfor Yahoo? I'd have taken it and run. Yahoo isn't worth 10c.
Other Comments
  • 16 Hide
    daimerous , December 3, 2012 10:06 PM
    Who is this Yahoo that you speak of???
  • Display all 20 comments.
  • 1 Hide
    Gundam288 , December 3, 2012 10:15 PM
    Yahoo has at least $2.7 billion? I'm guessing they are still getting money from AT&T for some SBC deals or something.
  • 13 Hide
    cruiseoveride , December 3, 2012 10:16 PM
    $44.6 Bfor Yahoo? I'd have taken it and run. Yahoo isn't worth 10c.
  • 9 Hide
    NuclearShadow , December 3, 2012 10:22 PM
    Yahoo is the perfect example of what happens to a company once they feel secure.
    They begin to ignore opportunity thinking everything is fine and nothing else is worth pursuing, failing to evolve. Eventually even the little guys grow past them and they find themselves struggling at the bottom of the food chain. Clinging on to the little relevance they once had wondering where it all went wrong.
  • 8 Hide
    Stevemeister , December 3, 2012 10:28 PM
    If Yahoo is only making revenue of 1.2 BN a quarter in "Revenue" (that's revenue not profit for the financially illiterate) then how the hell do the companies that are suing Yahoo figure they lost what amounts to $2.7 BN in "profit". This is the same country that allows Carlos Slim to become the richest man in eth world because he is fucking the average Mexican with exhorbitant phone rates because TelMex has no substantial competition in Mexico. That's beaner math for you!
  • 6 Hide
    wannabepro , December 3, 2012 10:51 PM
    Meh, Yahoo should just dump Mexico and not offer their search engine there.

    On the other hand, it seems that Mexico is the only country that actually fines companies big $,$$$,$$$. Sounds like someone wants some pocket padding.
  • 8 Hide
    back_by_demand , December 3, 2012 10:52 PM
    Microsoft is sitting back until it is ready to make a second bid at $43.60
    ...
    In total
  • 6 Hide
    Stevemeister , December 3, 2012 11:17 PM
    back_by_demandMicrosoft is sitting back until it is ready to make a second bid at $43.60...In total


    I wouldn't be surprised if there is some shady dealing going on in the background. Mexico - not exactly a stellar performer on the world corruption index scale

  • 4 Hide
    pjmelect , December 3, 2012 11:23 PM
    It may be surprising to some here but Yahoo is the second (next to Google) most often visited web site. The old dog may be dieing but it is not dead yet.
  • 3 Hide
    QEFX , December 4, 2012 12:54 AM
    pjmelectIt may be surprising to some here but Yahoo is the second (next to Google) most often visited web site. The old dog may be dieing but it is not dead yet.


    And they're a close #3 in the webmail race.
  • 3 Hide
    PudgyChicken , December 4, 2012 12:59 AM
    I would not be surprised if this ruling was the result of corruption or intimidation by the plaintiffs.
  • 2 Hide
    memadmax , December 4, 2012 1:27 AM
    I wouldn't pay it...
    Screw mexico...
  • 0 Hide
    tntom , December 4, 2012 2:14 AM
    Wow! That sounds excessive.
    I wish Yahoo! could team up with Mozilla and be integrated with Mozilla's smartphone OS. Yahoo! has the best coded email portal but it lacks integration with everything I use daily, the search email feature is lousy and their calendar is not anywhere close to Google's though.
  • 1 Hide
    kinggraves , December 4, 2012 2:35 AM
    A lot of people here seem to be stereotypically blaming Mexico or something. When is the last time you actually used Yahoo?

    The search engine is no longer relevant compared to better ones. Their chat client, one of the last few things unique to them these days is closing. It's only a blessing because the chat rooms have been filled with porn bots for years. Porn bots that mysteriously get past the constant captchas. The mail service also seems to get a mysterious amount of spam, yet their spam filter only catches the mail that I want to get. Yahoo doesn't do anything anymore that can't be done better by someone else. All they've managed to do is copy everyone else's ideas in a worse fashion. Much like AOL of times past, their time in the light has passed. They need to pack it in and settle into what niche they can fit before it's too late.
  • 2 Hide
    shqtth , December 4, 2012 3:18 AM
    All this over a yellow pages listings service? WTF
  • 1 Hide
    techcurious , December 4, 2012 3:51 AM
    StevemeisterIf Yahoo is only making revenue of 1.2 BN a quarter in "Revenue" (that's revenue not profit for the financially illiterate) then how the hell do the companies that are suing Yahoo figure they lost what amounts to $2.7 BN in "profit". This is the same country that allows Carlos Slim to become the richest man in eth world because he is fucking the average Mexican with exhorbitant phone rates because TelMex has no substantial competition in Mexico. That's beaner math for you!

    I am not arguing in favor of yahoo or the ruling, but I am wondering how someone as "Literate" as you assumes that the plaintiffs are claiming to have lost $2.7 billion within a single quarter or even a single year. And, just cause one company can't generate revenue, does not prove that it did not in some way prevent another company from generating substantial revenue. Once again, I am not arguing against or in favor of either party. I am just saying it's nice to be logical when making arguments! (Android is free and does not bring any direct revenue to Google. Yet if Android did not exist, Apple would be making buck loads more money selling at least twice as many iPhones! Even if you consider indirect profits Google is making through indirect revenue generated by Android, by means of apps and Ads, don't you think Android caused more lost revenue to Apple than it generated for Google?)
  • 0 Hide
    hwangchan , December 4, 2012 12:16 PM
    kinggravesIt's only a blessing because the chat rooms have been filled with porn bots for years. Porn bots that mysteriously get past the constant captchas. The mail service also seems to get a mysterious amount of spam, yet their spam filter only catches the mail that I want to get.


    Curiously enough, their spam firewall seems very efficient when sending from a Yahoo account. I receive all sorts of spam, but when I try to forward it, such as a false WOW account hijacker email to the Blizz piracy team, for example, Yahoo will block my email from going out, meaning I can't report the spammers to the proper authorities.

    Good ol yahoo..
  • 0 Hide
    bllue , December 4, 2012 3:13 PM
    Now we just need to see that other Mexican company (iFone) win the lawsuit against Apple.
  • 0 Hide
    rawoysters , December 4, 2012 4:13 PM
    "On the other hand, it seems that Mexico is the only country that actually fines companies big $,$$$,$$$. Sounds like someone wants some pocket padding."

    They have to find somebody that can make some money there besides the cartels.
  • 0 Hide
    richarduk , December 4, 2012 6:43 PM
    Yawho?
Tom’s guide in the world
  • Germany
  • France
  • Italy
  • Ireland
  • UK
Follow Tom’s guide
Subscribe to our newsletter