Re:Tumblr
by wp381640 on Thursday August 15, 2019 @12:18AM
(#20702540)
> I suppose if Verizon is taking the tax deduction on an original $1.1 billion purchase by Yahoo
Yahoo wrote down almost the entire value of Tumblr before the Verizon acquisition[0]
> What kind of business, let alone web business, sells for 1/10th annual revenue?
A business that is losing a lot of money and shrinking. Automattic have to invest a lot more than $3M to keep Tumblr alive and turn it around (200 employees) - the total investment isn't just the acquisition cost
With the headline figure it might seem like a nobrainer but Automattic could end up spending years investing in a turnaround that never happens
Yahoo wrote down almost the entire value of Tumblr before the Verizon acquisition[0]
> What kind of business, let alone web business, sells for 1/10th annual revenue?
A business that is losing a lot of money and shrinking. Automattic have to invest a lot more than $3M to keep Tumblr alive and turn it around (200 employees) - the total investment isn't just the acquisition cost
With the headline figure it might seem like a nobrainer but Automattic could end up spending years investing in a turnaround that never happens
[0] https://www.businessinsider.com.au/yahoo-tumblr-write-down-2...