{"id":10781,"date":"2016-03-01T09:49:50","date_gmt":"2016-03-01T09:49:50","guid":{"rendered":"http:\/\/rafaelfajardo.com\/portfolio\/meanwhile-in-yahoo-accounting-hq\/"},"modified":"2016-03-01T09:49:50","modified_gmt":"2016-03-01T09:49:50","slug":"meanwhile-in-yahoo-accounting-hq","status":"publish","type":"post","link":"https:\/\/rafaelfajardo.com\/portfolio\/meanwhile-in-yahoo-accounting-hq\/","title":{"rendered":"Meanwhile, in Yahoo accounting HQ"},"content":{"rendered":"

brucesterling<\/a>:<\/p>\n

\n

*Uh-oh.<\/p>\n

http:\/\/uk.businessinsider.com\/yahoo-could-write-off-entire-goodwill-value-of-tumblr-2016-2<\/a><\/p>\n

In 2013, Yahoo spent $990 million to acquire the microblogging site
\nTumblr ($1.1 billion if you include the $113 million in liabilities).<\/p>\n

Last month, Yahoo wrote off $230 million<\/a>
\n of its value. And now, it\u2019s hinting that there\u2019s a chance it could
\nwrite off the entire goodwill value that it paid to acquire Tumblr.<\/p>\n

According to its annual 10-K filing<\/a> Monday, Yahoo wrote (bolded for emphasis):<\/p>\n

\u201cGiven the partial impairment
\nrecorded in the Tumblr reporting unit in 2015, it is reasonably possible
\n that changes in judgments, assumptions and estimates the Company made
\nin assessing the fair value of goodwill could cause the Company to
\nconsider some portion or all of the remaining goodwill of the Tumblr reporting unit to become impaired.\u201d<\/p>\n

At the time of the acquisition, Yahoo said the goodwill portion of
\nthe deal was roughly $750 million. Goodwill is the amount paid for the
\ncompany beyond what is valued on the balance sheet, including things
\nthat are hard to measure, like the company\u2019s reputation or ideas that
\ncould bring future growth.<\/p>\n

In other words, Yahoo spent $750 million more than the actual value
\nof the assets owned by Tumblr to buy the company. But now it\u2019s saying
\nall of the $750 million could possibly go down the drain.<\/p>\n

The company said that the impairment was a result of many things,
\nincluding smaller market share, slower revenue growth and cash flow.
\nYahoo said during its most recent earnings call that Tumblr failed to
\nreach its 2015 revenue target of $100 million.<\/p>\n

One reason for the sales shortfall has to do with Yahoo\u2019s
\ndecision to combine Tumblr\u2019s sales team with the rest of the company. As
\n Business Insider previously reported<\/a>, the integration didn\u2019t go too well and Yahoo is now unwinding the two sales teams.<\/p>\n

That doesn\u2019t mean Tumblr is doomed. Its revenue is still
\ngrowing and Yahoo named it as one of the three major products for the
\ncompany moving forward. Plus, since the deal is already paid for, write
\noffs don\u2019t have much impact on the company\u2019s actual financials, meaning
\nit will only change the book value of the assets owned by Yahoo.<\/p>\n

But the fact that Yahoo could possibly write off the entire
\ngoodwill portion of the deal is a striking admission of failure for the
\nbiggest deal on CEO Marissa Mayer\u2019s watch\u2026.<\/p>\n<\/blockquote>\n

hmmmmm…. time to make a backup?<\/p>\n","protected":false},"excerpt":{"rendered":"

brucesterling: *Uh-oh. http:\/\/uk.businessinsider.com\/yahoo-could-write-off-entire-goodwill-value-of-tumblr-2016-2 In 2013, Yahoo spent $990 million to acquire the microblogging site Tumblr ($1.1 billion if you include the $113 million in liabilities). Last month, Yahoo wrote off $230 million of its value. And now, it\u2019s hinting that there\u2019s a chance it could write off the entire goodwill value that it paid to […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[10],"tags":[],"class_list":["post-10781","post","type-post","status-publish","format-standard","hentry","category-words"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p6PWot-2NT","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/rafaelfajardo.com\/portfolio\/wp-json\/wp\/v2\/posts\/10781","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/rafaelfajardo.com\/portfolio\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rafaelfajardo.com\/portfolio\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/rafaelfajardo.com\/portfolio\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/rafaelfajardo.com\/portfolio\/wp-json\/wp\/v2\/comments?post=10781"}],"version-history":[{"count":0,"href":"https:\/\/rafaelfajardo.com\/portfolio\/wp-json\/wp\/v2\/posts\/10781\/revisions"}],"wp:attachment":[{"href":"https:\/\/rafaelfajardo.com\/portfolio\/wp-json\/wp\/v2\/media?parent=10781"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rafaelfajardo.com\/portfolio\/wp-json\/wp\/v2\/categories?post=10781"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rafaelfajardo.com\/portfolio\/wp-json\/wp\/v2\/tags?post=10781"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}