Submitted by Fox First at Ten on November 9th
SAN FRANCISCO (AP) - Yahoo estimates it will absorb about $94 million in charges to pay for the closure of its South Korea operations and to account for the eroding value of its business in that country.
Most the charges outlined in a Thursday regulatory filing will be taken in Yahoo's fourth quarter, which ends Dec. 31.
All but $7 million will be non-cash charges. Yahoo expects to pay $5 million to cover the severance packages for laying off 200 employees affected by company's exodus from South Korea and another $2 million for closing offices in the country.
Yahoo Inc., which is based in Sunnyvale, Calif., announced it plans to leave South Korea three weeks ago without estimating the cost.
The company had operated a website in South Korea and sold Internet advertising in the country since 1997, but had been steadily losing market share in recent years. That prompted recently hired Yahoo CEO Marissa Mayer to decide to focus on other markets as she tries to revive the company's growth and lift its long-slumping stock price.
Yahoo shares fell 15 cents to close at $17.24. The stock has been stuck below $20 for more than four years.
Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
