Marissa Mayer has a horrible track record when it comes to Yahoo!’s acquisition of companies. Her $1 billion purchase of Tumblr led to a substantial write-down and other multi-million dollar purchases have flopped.
Last year Yahoo announced that it was spending $23 million on “goodwill” which amounts to an intangible valued asset.
Goodwill can be the value of a brand, or really anything that a company things is worth more than what’s available on its balance sheet.
In a regulatory filing on Tuesday, Yahoo revealed that it had written down the entire value of the mysterious company’s goodwill. In other words, the company is worth $0.
In just four years at the helm of Yahoo, Mayer has overseen the acquisition of dozens of different companies that have failed to strike gold for the company.
Unfortunately for Yahoo, you can’t deduct a “goodwill” writedown for tax purposes like you can with losses.
The newest failure comes at a time when Yahoo is attempting to offload its core internet business to Verizon and other potential buyers at a cost of $6 billion.
Nearly all of Yahoo’s market value of $35 billion is tied to its holdings in Alibaba and Yahoo Japan.