Ya­hoo says may write down good­will value of Tum­blr

The Pak Banker - - COMPANIES/BOSS -

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. (reut.rs/1pmbpLJ)

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.

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