Yahoo! Inc. (NASDAQ:YHOO) has announced that it’s considering reducing the goodwill of its micro-blogging website, Tumblr. Yahoo had initially bought the website at a price of $1.1 billion, two years ago. Added to this, the company also announced that it was considering alternatives to its core internet business. The move would be in favor of the company, since it is valued at a total of $28 billion, despite a $30 billion stake in Alibaba and Yahoo Japan.

Yahoo’s core business is valued at approximately $1 billion. The company’s main problem has been a series of bad business decisions that the company made since 1997. As per reports, Yahoo has acquired a total of 120 smaller companies, in order to fuel its growth. Added to this, the company has spent a total of $17 billion in acquisition costs. However, the gains from these companies have not justified Yahoo’s decisions.

Recently, Yahoo stated that it would be undertaking $230 million in impairment charges, with respect to Tumblr. In a statement the company also added that changes in judgments could lead to further impairment of Tumblr. The move to acquire Tumblr was initially seen as a bold move, since it had large visitor traffic, but was producing little revenue. However, the deal has not worked out for Yahoo thus far.

After coming under pressure from investors, the company has announced that it would reduce its workforce by 15%, during 2016. The charges associated with the layoffs amount to an estimate of $64-78 million. The amount also includes the costs associated with the closing of Yahoo offices in Dubai and Mexico City amongst other locations. Added to this, the company has acquired yet another social platform, Polyvore, which the company states that it is still integrating. Whether the decision would go in favor or against Yahoo’s interests remains to be seen.

Yahoo! Inc. (NASDAQ:YHOO) had a trade volume of 21.17 million and gained 1.34% during the February 29 session, to reach a close at $31.79.

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Steve Kanaval: Portfolio Manager/Writer/ Market Analyst Steve began his career in the Trading Pits in Chicago making markets at the Chicago Mercantile Exchange (NYSE:CME) the Chicago Board of Trade and the CBOE in the early 80’s. He ran the Morgan Stanley Derivative Prop Trading for the firm specializing in Index Arbitrage. He continued his career as a Trader/Portfolio Manager for multiple Hedge Funds during the Internet Boom of the 90’s managing large portfolios. Steve is known as an expert in MicroCap Technology Stocks and the emerging Digital Currency markets as a Portfolio Manager for his Family Office. Steve has managed portfolio’s in volatile asset classes for 3 decades as a commodity trader, hedge fund manager and digital currency trader and miner. Steve publishes his views on the asset classes in a public forum and has published more than 10,000 articles simplifying these complex and volatile assets for readers. His work is published on multiple sites including Bloomberg,,, CryptoCurrencyNews as a paid contributor. His work includes research, journalism and archived video on important market volatility related to stocks, digital currency and other volatile misunderstood asset classes. He offers a humorous, unique insight and the related back stories and drivers for readers interested in volatility and emerging market assets. Full disclosure Steve is long 25 digital currencies and sits on the board of multiple public companies involved in digital currencies, and owns shares in these companies from time to time.