Yahoo Loses Lawsuit, Ordered to Pay $2.7 Billion
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.