Yahoo has written down a further $428 million of the estimated worth of Tumblr following its acquisition of the microblogging site in 2013.
The announcement will serve as a further embarrassment to Yahoo CEO Marissa Mayer, who after acquiring Tumblr famously promised to “not screw it up.”
Mayer could soon be leaving the company after it was confirmed that Yahoo was considering the possibility of selling core parts of its business.
The news adds further evidence to the claim that the left-wing online media bubble is bursting, with firms such as BuzzFeed, Gawker, Salon, and Vice all facing financial difficulties.
It was revealed in May that over 65 million passwords had been obtained from users of Yahoo by a hacking group.