Yahoo is having a hard time lately as it wrote down the value of its Tumblr acquisition by $482 million after the initial $230 million write down last February.
With their latest move, Yahoo has now written down about $700 million off Tumblr, more than half of the $1.1 billion price that they paid for buying the social networking site in 2013.
The tech company cited lower projections for the social network’s future performance as the reason for the write down but Yahoo also has its own fault as well by struggling to meet its ambitious $100 million sales goal for Tumblr. Another possible reason was that some social media companies like Twitter are decreasing in value.
The write down update was part of Yahoo’s latest earning report which showed some positive news in terms of total revenues as Yahoo earned $1.31 billion in the second quarter of 2016, which is higher from $1.24 billion a year earlier.
Meanwhile, even though the third and final round of bids to buy Yahoo’s core business ended on Monday, the company provided no updates about the sales process.
Yahoo CEO Marissa Mayer only said that their company has made great progress on strategic alternatives but stopped short of providing updates about the sales talk.
According to reports, the three remaining bidders to acquire Yahoo are Verizon Communications, TPG, and a group headed by Quicken Loans founder Dan Gilbert.
(Photo Source: marketingland.com)