Yahoo reports 44% drop in Q2 earnings, writes down Tumblr's value by more than 40%

Yahoo reports 44% drop in Q2 earnings, writes down Tumblr's value by more than 40%
Back in May 2013, Yahoo purchased picture sharing site Tumblr for $1.1 billion in cash (no, it wasn't paid all in pennies). For some reason, Yahoo CEO Marissa Mayer thought that the acquisition would make her company more relevant. In the press release announcing the acquisition, Yahoo promised not to screw it up. But guess what happened.

In announcing today a 44% year-over-year decline in per share earnings for the second quarter (from 16 cents a share to 9 cents), Yahoo also said that in retrospect it paid too much for Tumblr and took a $482 million write off. Yahoo had been carrying Tumblr on its balance sheet at a valuation much higher than its true worth. Earlier this year, another $230 million was written off Tumblr's value after the app failed to meet certain revenue targets. Yahoo also reported today a gain of $65 million in revenue year-over-year to $1.35 billion, for the three month period ended in June.

Final bids are due this week as the auction of Yahoo nears a conclusion. Verizon is considered one of the leading bidders for the company, which isexpected to draw a winning bid in the range of $3.5 to $5 billion.


source: LATimes

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18 Comments

1. Subie

Posts: 2356; Member since: Aug 01, 2015

CEO Marissa Mayer should've been fired long ago.

2. Scott93274

Posts: 6032; Member since: Aug 06, 2013

Well she hasn't been in the role for too long, just 4 years, and when your the CEO of a internet search engine that's not Google then you've got your work cut out for you.

10. Subie

Posts: 2356; Member since: Aug 01, 2015

There's a lot more to these companies then just the search engine, and it's been 4 years downhill for Yahoo.

13. trojan_horse

Posts: 5868; Member since: May 06, 2016

But still, she should have been fired. The Tumblr's price of acquisition was just ridiculous!

5. Mxyzptlk unregistered

Her sexiness makes me want to drop my pants for her and use yahoo.

7. darkkjedii

Posts: 30974; Member since: Feb 05, 2011

LMAOOO

8. Scott93274

Posts: 6032; Member since: Aug 06, 2013

I say go for it, with a stressful job like hers I'm sure she would appreciate the laugh.

18. Mxyzptlk unregistered

You coming up short could explain your butthurt on PA.

14. trojan_horse

Posts: 5868; Member since: May 06, 2016

But don't jerk off, already! lulz

17. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Her PR pictures are nice. But she doesn't look that pretty in person. In person she looks like an uglier version of G. Paltrow.

16. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Its not her fault, Yahoo was already going down. She is just helping to drive it even further. No CEO could have helped Yahoo. Yahoo just didn't change with the times fast enough. That is what happens when money is to important. The original owner should never have sold it. He probably had the sense to evolve Yahoo with todays tech. Yahoo should have been what FB is now.

3. darkkjedii

Posts: 30974; Member since: Feb 05, 2011

Sexy ass CEO.

4. Mxyzptlk unregistered

I agree.

6. darkkjedii

Posts: 30974; Member since: Feb 05, 2011

Right on

11. jellmoo

Posts: 2567; Member since: Oct 31, 2011

She's one of my 5 freebies I have. I had to explain to my wife who she is.

9. JMartin22

Posts: 2369; Member since: Apr 30, 2013

They built her up and hyped her capabilities because she was propped up to be a "capable female leader" - all this actually did was just set her up for failure in the long run because people expect unreasonable great achievements.

12. deewinc

Posts: 455; Member since: Feb 21, 2013

If she was working for PornHub I guess they would have met their targets. As for now, she should consider herself, screwed.

15. trojan_horse

Posts: 5868; Member since: May 06, 2016

Luuuuulzzzzz! Pornhub huh?

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