Yahoo, Visa in Electronic Commerce Deal

Yahoo Inc., whose popular Web site helps computer users navigate the sprawling Internet, announced a global electronic commerce alliance with the Visa International credit card organization. In a related move, Santa Clara-based Yahoo restated its second-quarter earnings to reflect a $21.2-million one-time charge stemming from the deal, which included the issuing of more than 466,000 shares in Yahoo to Visa International. Yahoo and Visa said they had formed the strategic alliance to “aggressively extend their commerce-related activities on the Internet.” Yahoo Senior Vice President Jeff Mallett said the agreement will enable Yahoo and Visa to create co-branded shopping guides, a co-branded Yahoo Visa card and joint promotions of the two brands through online and other media. Yahoo already has partnerships with a small group of Internet merchants, including stockbroker ETrade Group and bookseller Amazon.com. Mallet said Yahoo plans to announce more such deals--up to a couple dozen--beginning this fall. Excluding the one-time, noncash charge, Yahoo said second-quarter net income was $610,000, or 2 cents a share, as previously reported July 9. Yahoo also said its board had approved a 3-for-1 stock split. The announcement was made after the close of trading. Yahoo’s stock rose 69 cents to close at $48.25 on Nasdaq.