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Follow on Google News | Yahoo Gets a Chance to Explain Dramatic Stock Price Drop, Warwick Ventures ReportsA potential turnaround for the internet giant may be on the way, says Tony Peters.
By: Steve Holmes The erosion in Yahoo's stock has wiped out about $13 billion in shareholder wealth. Yahoo's woes have continued under new CEO Carol Bartz, although most analysts believe the company is starting to pull out of its slump. Bartz's boldest move came in July when she forged a partnership with rival Microsoft Corp. Under the proposed 10-year alliance, Microsoft will process the U.S. search requests on Yahoo's Web site and deliver much of the advertising tied to those inquiries. The deal is designed to lower Yahoo's expenses on search technology so it can focus on developing products and services that will encourage people to spend more time on its Web site. This week, analysts will try to get a better handle on how the Microsoft partnership is progressing as well how much longer it will be before Yahoo's Internet ad sales bounce back. Yahoo's ad revenue, the company's main source of income, decreased by 12 percent during the first nine months of the year, and management already has predicted sales will be down again in the fourth quarter. # # # Warwick Ventures is a Venture Capital firm specializing in the creation and development of small and mid cap companies Our expertise lies in our ability to identify fututre winners before the market. Our strategy is to work with these and help them grow. End
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