Yahoo 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.
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.
The company’s shares closed up 1.3 percent at
$31.79 on Monday and were largely unchanged in extended trading.
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