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Reuters

Yahoo Bought Tumblr for $1.1 Billion About Two Years Ago; Now Yahoo Says It May Have to Write Down Tumblr’s Goodwill Value

Mar 1, 2016  •  Post A Comment

“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,” Reuters reports. Yahoo revealed in February that it took a $230 million impairment charge associated with Tumblr and was looking into strategic alternatives for its core Internet business.

In a regulatory filing Monday, Yahoo said: “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.”

Reuters adds: “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.”

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