Yahoo, as expected, announced third quarter earnings and revenue declines but said for the first time a technology tie to Microsoft had been extended to 2013.
The announcement could indicate that by then, Yahoo might be open to another takeover bid from Microsoft, which previously offered to acquire Yahoo for $41 billion in 2008.
Tim Morse, Yahoo's interim CEO who was appointed interim CEO after the ouster of CEO Carol Bartz on Sept. 5, said his focus was to move the business forward with new technology, partnerships, products and premium personalized content.
Morse didn't mention any proposed spinoffs, acquisitions or partnerships with current allies including Microsoft, which handles its search engine; China's Alibaba Group, in which Yahoo owns a 40 percent stake, or Yahoo Japan, where SoftBank is majority owner.
Sunnyvale, Calif.-based Yahoo said third quarter net income slid 26 percent to $293 million, while revenue dipped 5 percent to $1.07 billion. But excluding traffic acquisition costs, revenue actually fell 24 percent to $1.22 billion.
Cash and securities were $2.87 billion on Sept. 30, down from $3.7 billion on Dec. 31. Some of the cash was used to repurchase 44 million shares during the third quarter for about $593 million.
Morse scheduled an investor call for later Tuesday during which he is expected to be questioned about Yahoo's future, including the search for a new CEO, possible acquisitions by Microsoft as well as private equity prospects and sale of its Alibaba stake.
Jack Ma, Alibaba chairman, said he would be interested in buying all of Yahoo and had lined up financing from undisclosed sources, believed to include Temasek Holdings, the Singapore state investment company.
Yahoo shares rose 4.2 percent in after hours trading to $16.10. They closed down 1.4 percent at $15.47 during regular trading, giving the company a market capitalization of $19.5 billion.