Yahoo announced at an investor presentation that they expect to double their operating cash flow in three years from $1.9 billion to $3.7 billion. Yahoo also took the opportunity to reaffirm their 2008 financial outlook. Yahoo said by 2010, they expect to earn $8.8 billion in revenue (excluding traffic acquisition costs). This presentation is to bolster Yahoo’s claim that Microsoft’s $45 billion bid for Yahoo is undervalued.
Yahoo’s Jerry Yang said:
Yahoo! is positioned for accelerated financial growth – we have a powerful consumer brand, a huge global audience and a highly profitable operating model. With industry-leading tools, technology, people and platforms, Yahoo! is poised to capture growth in display advertising where we believe growth will be greatest. Combined with our recent progress in search monetization, Yahoo! is well positioned to provide the broadest range of products to our advertisers while delivering the most compelling experiences to users.
For past coverage, see our Microsoft & Yahoo Merger category.