<div>Yahoo Inc said on Tuesday it had signed a search advertising deal with Google Inc, providing a potential boost to Marissa Mayer's efforts to turn around the company, which also reported revenue and profit that fell short of market estimates.</div><div> </div><div>The deal with Google, a unit of Alphabet Inc, builds on an existing search partnership Microsoft Corp under which Yahoo gets a percentage of revenue from ads displayed on its sites.</div><div> </div><div>Yahoo, whose shares were down 1.6 percent in after-hours trading, said the companies have agreed to delay implementation of the deal in the United States to allow the antitrust division of the Department of Justice to review it.</div><div> </div><div>Yahoo has been struggling to boost revenue from ad sales in the face of stiff competition from Google and Facebook.</div><div> </div><div>The Google deal was one of the few bright spots included in the company's third-quarter results statement.</div><div> </div><div>Yahoo said it expected fourth-quarter revenue of $1.16 billion–$1.20 billion, well below the average analyst estimate of $1.33 billion, according to Thomson Reuters I/B/E/S.</div><div> </div><div>Mayer, in her fourth year as chief executive, said the forecast was "not indicative of the performance we want."</div><div> </div><div>"We are also experiencing continued revenue headwinds in our core (advertising) business, especially in the legacy portions," Mayer said on a call with analysts.</div><div> </div><div><strong>Mavens Perform</strong></div><div>Yahoo said the proposed spinoff of its 15 percent stake in Chinese e-commerce giant Alibaba Group Holding Ltd - a key issue for shareholders - may now close in January.</div><div> </div><div>Yahoo earlier this year sought a private letter ruling from the Internal Revenue Service to confirm whether the transaction, worth about $27 billion currently, would result in a tax obligation. The tax agency denied the request, but Yahoo said it would go ahead with the spinoff by year-end anyway.</div><div> </div><div>Many analysts attribute little value to Yahoo's core business without its Asian assets, which also include a 35 percent stake in Yahoo Japan Corp.</div><div> </div><div>Apart from the Google deal, the only other good news came results came from Yahoo's emerging businesses, which Mayer calls Mavens - mobile, video, native and social advertising.</div><div> </div><div>Revenue in that area rose 43 percent to $422 million in the quarter. Native advertising refers to ads that blend into the type and style of the content being viewed.</div><div> </div><div>Excluding items, the company earned 15 cents per share, missing the average analyst estimate of 17 cents.</div><div> </div><div>Revenue after deducting fees paid to partner websites fell to $1.0 billion from $1.09 billion, and the company forecast a drop to $920 million-$960 million in the current quarter.</div><div> </div><div>Traffic acquisition costs, the amount Yahoo spends to attract users to its websites, jumped to $223 million in the quarter from $54 million a year earlier.</div><div> </div><div>GAAP revenue rose 6.8 percent to $1.23 billion, falling short of the average analyst estimate of $1.26 billion, according to Thomson Reuters I/B/E/S.</div><div> </div><div>Through Tuesday's close of $32.83, Yahoo's shares had lost 35 percent this year.</div><div> </div><div>(Reuters)</div>
