Fusion Corporate Partners

The New York Times DealBook is reporting that Yahoo! is preparing to sell and has attracted the attention of several buyout shops and strategic investors.

Private equity firm Silverlake, Microsoft and Alibaba Group are all mentioned as potential bidders. Yahoo’s board discussed Silver Lake’s approach during its meeting on Wednesday and hired Allen & Company as its investment bank for a continuing review of Yahoo’s business.

• Read the original story on DealBook
• Further background reading at AllThingsD

Yahoo! latest quarterly results report is for the period ending June 30, 2011. As follows:

Revenue excluding traffic acquisition costs (“revenue ex-TAC”) was $1,076 million for the second quarter of 2011, a 5 percent decrease from the second quarter of 2010, primarily due to the revenue share related to the Search Agreement with Microsoft. Excluding this item and other special items, revenue ex-TAC for the second quarter of 2011 increased 1 percent year over year. Special items include the impact of the divestiture of HotJobs, broadband deferred revenue amortization, and certain fee rate reductions.

GAAP revenue was $1,229 million for the second quarter of 2011, a 23 percent decrease from the second quarter of 2010, primarily due to the required change in revenue presentation related to the Search Agreement and the associated revenue share with Microsoft. Excluding the impact of these two items and the impact of the divestiture of HotJobs, broadband deferred revenue amortization, and certain fee rate reductions, revenue for the second quarter of 2011 decreased 9 percent compared to the second quarter of 2010.

Income from operations increased 9 percent to $191 million in the second quarter of 2011, compared to $175 million in the second quarter of 2010.

Net earnings per diluted share increased 18 percent to $0.18 in the second quarter of 2011, compared to $0.15 in the second quarter of 2010.

Second Quarter 2011 Revenue Results

• Display revenue ex-TAC increased 5 percent to $467 million, compared to $445 million for the second quarter of 2010.
• GAAP display revenue increased 2 percent to $524 million, compared to $514 million for the second quarter of 2010.
• Search revenue ex-TAC was $371 million, a 15 percent decrease compared to $438 million for the second quarter of 2010.
• GAAP search revenue was $467 million, a 45 percent decrease compared to $842 million for the second quarter of 2010.
• Cash Flow and Cash Balance
• Cash flow from operating activities for the second quarter of 2011 was $331 million, a 5 percent decrease compared to $347 million for the same period of 2010.
• Free cash flow was $96 million for the second quarter of 2011, a 25 percent decrease compared to $127 million for the same period of 2010.
• Cash, cash equivalents, and investments in marketable debt securities were $3,255 million at June 30, 2011 compared to $3,629 million at December 31, 2010, a decrease of $374 million. During the second quarter of 2011, Yahoo! repurchased 30 million shares for $472 million.

Read the Quarterly earning announcement

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