Late last week, the news broke that Yahoo was ordered by the 49th Civil Court of the Federal District of Mexico City to pay $2.7 billion to Worldwide Directories S.A. de C.V. and Ideas Interactivas, S.A. de C.V.
This is over a breach of contract suit, where these yellow page companies sued Yahoo.
Yahoo said in a statement:
Yahoo! believes the plaintiffs' claims are without merit and will vigorously pursue all appeals. The plaintiffs alleged claims of breach of contract, breach of promise, and lost profits arising from contracts related to a yellow pages listings service.
To put this in perspective, Yahoo earned about $1.2 billion in revenues the past quarter and about $5 billion in the past year or so.
So this can be very devastating for the old internet company.
Forum discussion at WebmasterWorld.
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