My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.

News and Trends / Yahoo!

Yahoo May Write Off $1 Billion Acquisition of Tumblr

Yahoo May Write Off $1 Billion Acquisition of Tumblr
Image credit: Magnus Höij | Flickr
Yahoo CEO Melissa Mayer
2 min read
This story originally appeared on Reuters

Yahoo Inc. said it may have to write down the goodwill value of Tumblr, more than two years after the web pioneer spent $1.1 billion to buy the microblogging site.

Yahoo said earlier in the month it took a $230 million impairment charge related to Tumblr and was considering strategic alternatives for its core internet business.

"It is reasonably possible that changes in judgments ... could cause the company to consider some portion or all of the remaining goodwill of the Tumblr reporting unit to become impaired," Yahoo said in a regulatory filing on Monday.

The deal for Tumblr was then seen as a bold bet by Yahoo Chief Executive Marissa Mayer to revitalize the company by co-opting a Web property with strong visitor traffic but little revenue.

Yahoo said on Friday it would take pretax charges of $64 million to $78 million, mostly in the first quarter of 2016, due to job cuts and other restructuring moves.

Of the total, $40 million to $48 million would be for severance pay and related cash expenditures, the company said in a filing.

Yahoo has said it would reduce workforce by 15 percent by the end of 2016 and close offices in Dubai, Mexico City, Buenos Aires, Madrid and Milan.

The company's shares closed up 1.3 percent at $31.79 on Monday and were largely unchanged in extended trading.

(Reporting by Alan John Koshy in Bengaluru; Editing by Savio D'Souza and Sriraj Kalluvila)

No Bonus for Marissa Mayer After Another 32 Million Yahoo Accounts Breached