10-Q Watch: Yahoo’s Q3 Details

Not too many revelatory details in its latest 10-Q filing, filed earlier today with SEC.

Some points worth pointing out

– Money spent on acquisitions in first nine months of 2005: $128.6 million, compared to $656 million in the same period last year.

– Fees revenue for Q3 increased $60 million, or 55 percent, as compared to the same period in 2004, of which $15 million is attributable to acquisitions.

– Product development expenses for Q3 increased $45 million, or 46 percent, as compared to the same period of 2004. Approximately $31 million of the increases for Q3 related to increased compensation expenses as we continued to hire engineers to further develop and build new properties and services on the Yahoo! Network.

– This portion of a risk factor says it all: “Our ability to maintain and build relationships with third-party content providers will be critical to our success. In addition, as new methods for accessing the Web become available, including through alternative devices, we may need to enter into amended content agreements with existing third-party content providers to cover the new devices. Also, to the extent that Yahoo! develops content of its own, Yahoo!’s current and potential third-party content providers may view our services as competitive with their own and this may adversely affect their willingness to contract with us. We may be unable to enter into new, or preserve existing, relationships with the third parties whose content we seek to obtain. In addition, as competition for compelling content increases both domestically and internationally, our content providers may increase the prices at which they offer their content to us and potential content providers may not offer their content on terms agreeable to us. An increase in the prices charged to us by third-party content providers could harm our operating results and financial condition. Further, many of our content licenses with third parties are non-exclusive.”

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