Marissa Mayer has screwed up on everything at Yahoo, and especially Tumblr
More bad news at Yahoo, which is expected to be sold off to Verizon or some other bottom feeders. It looks like Yahoo has now written off just about three quarters of the nominal value of Tumblr: they wrote off $482 million this week, and $230 million last fall, $712 million in all, and it was purchased for $1.1 billion in 2013.
Yahoo disclosed that during the second quarter of 2016, it took impairment charges totaling $482 million for Tumblr, the blogging site it acquired in 2013 — the biggest deal under Mayer’s leadership. The write-down was the result of a combination of factors, according to the company, including decreases in projected Tumblr operating results and estimated future cash flows. That comes after Yahoo took a $230 million goodwill-impairment charge for Tumblr for the fourth quarter of 2015.
In 2012, Yahoo hired Mayer, a prominent Google exec who at one time led its search business. But Yahoo’s financial performance has continued to decline, despite her efforts to double down in Internet search to compete with her former employer (even as Google is a key search partner, along with Microsoft, Mozilla and others). Another strategy that didn’t pay off: Yahoo’s ill-fated foray into original long-form entertainment, with shows that included the pickup of season 6 of cult comedy “Community” after NBC cancelled it.
With the Tumblr write-down, Yahoo posted a net loss of $440 million for Q2 (versus a net loss of $22 million in the year-earlier period), or 46 cents per share. Yahoo’s operating loss for Q2 ballooned more than tenfold, to $490 million, compared with the year-earlier quarter.
I’d like to see Tumblr spinned out and reanimated, but it will likely just molder.
Originally published at www.stoweboyd.com.