Yahoo Wins $2.75 Billion Appeal In Yellow Pages Case

Yahoo legalYahoo announced yesterday that it had prevailed in an appeal of a $2.75 judgment in Mexico obtained by former joint venture partners. Those former partners, Worldwide Directories and Ideas Interactivas, sued Yahoo for breach of contract and damages.

The case arose from the termination of a contract between Yahoo de Mexico and Ideas Interactivas. In roughly 2002, the companies agreed to jointly produce online and print directories: “Yahoo! Paginas Utiles.” The project was initially successful and the parties sought to expand the deal to other countries and regions, including Central America, Australia and Japan.

In 2005, however, Yahoo decided to end the deal. The contract was supposed to run through 2009. As a result of the termination of the contract Ideas Interactivas said it was forced into bankruptcy.

The lower court (49th Civil Court of Mexico) entered a preliminary judgment in favor of plaintiffs for $2.75 billion. The judgment represented a substantial chunk of Yahoo’s cash-on-hand. It was also more than Yahoo’s Q4 revenue.

Thus the legal victory is a significant one for Yahoo as it seeks to use its cash for operations and acquisitions, especially as it proposes to spend $1 billion on Tumblr.

Related Topics: Channel: Local | Yahoo: Business Issues | Yahoo: Legal | Yahoo: Maps & Local | Yahoo: Outside US | Yahoo: Partnerships | Yahoo: Search

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About The Author: is a Contributing Editor at Search Engine Land. He writes a personal blog Screenwerk, about SoLoMo issues and connecting the dots between online and offline. He also posts at Internet2Go, which is focused on the mobile Internet. Follow him @gsterling.

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  • http://www.jamie-anderson.com/about-me/ Jamie Anderson

    Wow, now that’s a nice payout! Be interesting to see how they spend it.

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