Not counting revenue passed on to partner sites, Yahoo’s third-quarter sales will fall short of the $1.13 billion to $1.25 billion analysts had predicted. Yahoo’s underperformance is largely due to the increasing dominance of Google and Facebook, and comes despite Yahoo’s recent efforts to integrate with Facebook and Zynga Game Network, the creator of FarmVille and Mafia Wars. Yahoo turned down a bid from Microsoft in 2008, and is now working with Goldman Sachs to defend against a possible takeover. Meanwhile, AOL has been talking with private-equity companies about a possible purchase of parts of Yahoo.
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