Yahoo (NASDAQ: YHOO), may be nearing its end as an independent company. Marissa Mayers’ promise to “not screw things up” during her largest acquisition of $1.1 billion in Tumblr as chief executive has resulted in sub-par performance relative to forecasts, leading to a nearly 50% writedown in Tumblr overall. It makes one wonder what the true valuation of a company as a tech giant may be if their largest contribution to the market capitalization comes from holding stock in Asian giant Alibaba (NYSE: BABA).
Tumblr fits under the ‘S’ category of a Yahoo called MaVeNS. This acronym (somehow) stands for Mobile, Video, Native, and Social, and was part of Mayers’ plan in restoring Yahoo to its former glory.
There is more doom and gloom implied from the writedown of Tumblr coming in the form of this being a reflection of what is happening to other social networks, such as Twitter (NYSE: TWTR).
Despite these attempts, Yahoo is currently up for sale, the final round of auction being conducted next Monday, and may have just filed its last quarterly with the 2016 Q2 report. Several of the bidders have been confirmed as AT&T (NYSE: T), Verizon (NYSE: VZ), a Berkshire Hathaway-backed entity, and various private equity groups.