technology news Beijing time on December 4th morning news, Reuters quoted informed sources said, YAHOO will be on the Mexico court’s $2 billion 700 million compensation appeal, the judgment that there are a number of errors, including program error and improper application of law etc..
was accused of breach of contract in YAHOO had signed with Worldwide Directories and Ideas Interactivas two yellow pages company contract. YAHOO in 2002 signed a business cooperation agreement with the two companies, but the cooperation between the two sides in the end of 2009. The plaintiff accused YAHOO of violating contracts and commitments, and brought them losses. YAHOO believes that there is no basis for this lawsuit.
YAHOO announced on Friday, the Federal District of Mexico City forty-ninth civil court made a preliminary ruling that the company lost, the plaintiff should pay $2 billion 700 million.
has yet to comment, and YAHOO declined to comment.
informed sources, YAHOO’s appeal is expected to be accepted by the high court of Mexico City. It’s unclear when YAHOO will appeal.
the case caused a lot of investors and industry observers puzzled, especially considering the non final ruling of the amount of judgment. YAHOO did not mention the case in the recent 10Q document, the document specifically listed companies involved in major legal proceedings.
JP Morgan analyst Doug · (Anmuth) on Friday released a research report said: taking into account the size of YAHOO’s business in Mexico is very small, we believe that the figure of $2 billion 700 million is very high. But we believe that the stock may be due to the mild decline in the news."
added: "it is not clear how the Mexico court drew the figure of $2 billion 700 million, but that is equivalent to 40% of YAHOO’s cash reserves as of the end of 2012." Converted into shares, equivalent to $2.30 per share.
YAHOO shares fell 1.2% on Monday to close at $18.55 on the Nasdaq stock market. (Yu