Although Yahoo reported decent earnings in its Q2 2016 financial call yesterday, the embattled company reported yet another write down on its $1.1 billion Tumblr acquisition. Yahoo is in the process of soliciting bids for its core businesses as well as downsizing significantly, but the company still didn’t have anything to share about a potential buyer on its call, with the third and final round for bids due on Monday.
Yahoo said it had lowered its projections for Tumblr’s performance, writing down $482 million in “impairment charges.” Last quarter, Yahoo similarly took a $230 million write down on the social media platform. CNN Money notes that Yahoo has now written down about half the value of its original investment in Tumblr, “rendering [CEO Marissa] Mayer’s biggest acquisition to date effectively worthless.”
When Yahoo acquired Tumblr in 2013, the company put out a press release to placate angry and worried Tumblr users, promising “not to screw it up.”
Read 3 remaining paragraphs | Comments
Source: Ars Technica – Yahoo may not have “screwed Tumblr up,” but it has hemorrhaged money