Yahoo spared $2.7bn Mexican damages Yahoo has been spared a potential $2.7bn payout in legal damages after a Mexican court overturned an earlier ruling against the US web portal in a contract dispute. In November 2011, WorldWide Directories and Ideas Interactivas, former Yahoo partners in Mexico on a directories business, filed an action against Yahoo, alleging breach of contract, breach of promise and lost profits dating back to 2002 and 2004. Yahoo counter-sued for $2.6m for services rendered. After a lengthy trial, last November a Mexican court sided with WorldWide Directories and awarded $2.75bn in damages against Yahoo, of which $2.4bn related to lost profits. On Thursday, Yahoo announced that the Superior Court of Justice for the Federal District in Mexico had granted Yahoo's appeal and reversed the earlier, non-final ruling of the 49th Civil Court of Mexico. It reduced the damages to $172,500 and upheld the $2.6m awarded in the original judgment, Yahoo said in a statement, which it described as a "favourable" decision. WorldWide Directories could appeal against the ruling. A representative for the company's lawsuit did not immediately respond to a request for comment. Before the announcement was made, Yahoo's shares had closed 2.8 per cent lower at $26.58 in New York trading. The stock has increased by more than a third so far this year. Earlier on Thursday, Yahoo announced a partnership with Twitter to incorporate its short messages and images into its news homepage. "140 characters can connect athletes with their fans, capture live chatter from the red carpet, and inspire global debate," Yahoo's chief executive Marissa Mayer wrote in a blog post. Yahoo will add "relevant and personalised" tweets alongside news stories. "Users now also have an easy way to discover relevant and interesting people and publishers to follow on Twitter, personalised to their interests and preferences," Ms Mayer said. Financial terms of the partnership were not disclosed.