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Yahoo acquires Tumblr for $990.2 million in May 2013

Yahoo acquires Tumblr for $990.2 million in May 2013. Assets acquired from Tumblr ($ in millions). Question #1. What is the amount of goodwill that Yahoo will recognize from this transaction?. Net asset value vs. Purchase price. Net asset value vs. Purchase price. Question #2.

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Yahoo acquires Tumblr for $990.2 million in May 2013

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  1. Yahoo acquires Tumblr for $990.2 million in May 2013

  2. Assets acquired from Tumblr ($ in millions)

  3. Question #1 • What is the amount of goodwill that Yahoo will recognize from this transaction?

  4. Net asset value vs. Purchase price

  5. Net asset value vs. Purchase price

  6. Question #2 • Which intangible assets in the purchase of Tumblr can be amortized by Yahoo?

  7. Question #2 • Which intangible assets in the purchase of Tumblr can be amortized?

  8. Question #3 • Why would Yahoo be willing to pay $750 million more than the value of Tumblr’s identifiable assets?

  9. Question #3 • Why would Yahoo be willing to pay $750 million more than the value of Tumblr’s identifiable assets? Answer: Yahoo expects Tumblr to bring in ad revenue. In addition, Yahoo wants to gain access to Tumblr’s young community of users.

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