Yahoo (YHOO) shareholders who read the fine print in the press release will have observed that they got insulted to the tune of $37 million in advisory fees in Q3. What, pray tell, were the expert advisors paid for?
- Blowing the Microsoft deal (This is only the Q3 portion, of course; As a reminder, Microsoft offered $33. Yahoo’s stock currently trades at $12.)
- Constructing an emergency search deal with Google that apparently won’t pass muster with the Justice Department
- Fighting off Carl Icahn
Just as bad, Yahoo regards these fees as “extraordinary” items that shouldn’t be factored into the calculation of earnings per share. Please. At best, fees like these should be mentioned in passing when discussing the earnings results–they shouldn’t be stripped out of operating EPS calculations.
See Also: Yahoo Q3: Crappy, But Not Terrible