Yahoo's sale plans get boost as it beats expectations in first quarter

Shares in Yahoo rose 1.6% in after hours trading, as the web company’s first quarter results nudged past analysts’ expectations.

Prompted by activist investors, Yahoo has just closed first-round bids for its core business. Bidders including telecoms giant Verizon and the UK newspaper group, the Daily Mail, with private equity group TPG, are understood to have submitted offers.

Potential buyers will hear shortly whether they have progressed to the second round in an auction that is due to be completed in June. Marissa Meyer, Yahoo’s chief executive refused to comment on the sale, saying only that it was "a top priority" in order "to achieve the best possible outcome for our shareholders".

Yahoo’s first quarter revenue fell 11.3% to $1.09 billion (£758 million) in the first quarter, the first decline after four straight quarters of growth. But the numbers were marginally better than analyst estimates of $1.08 billion.