Yahoo Blames 'Community,' Original Shows for $42 Million Write-Down

Yahoo Chief Financial Officer Ken Goldman said original video series “Community,” “Sin City Saints” and “Other Space” were the cause of a write-down of $42 million in the company’s third quarter.

“We thought long and hard about it,” Goldman said during a call with investors following the release of Yahoo’s Q3 earnings.

“What we concluded is certain of our original video content, we couldn’t see a way to make money over time. I’m thinking of ‘Community,’ I’m thinking of ‘Sin City Saints’ and so forth. So there, where we had spent money and had some assets on our balance sheet, we elected to write those off. That actually helps us going forward and we won’t have the expense to impact us going forward.

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“In thinking through that, we thought of not only what is the cost, but what is the cost to market and create the streams you need to make them successful. So we’re not saying we’re not going to do these at all in the future, but what we’re saying is in three cases, at least, it didn’t work we had hoped it would work, and we decided to move on.”

Yahoo reported its earnings for the third quarter of 2015 on Tuesday, falling short of Wall Street expectations.

Also Read: Yahoo Q3 2015 Earnings Fall Short of Expectations

The digital media company reported earnings per share of $0.15, which is lower than Wall Street’s expectations of $0.17 EPS. The number is also lower than the $0.52 earnings for the same quarter a year ago.

Yahoo also reported revenue of $1.23 billion, which fell short of the projected $1.26 billion.

TheWrap's TV Stars and Showrunners Exclusive Portraits (Updating Photos)

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Grace Gealey, "Empire"
Kaitlin Doubleday, "Empire"
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Kaitlin Doubleday, "Empire"
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Martin Starr, Kumail Nanjiani, Thomas Middleditch and Zach Woods, "Silicon Valley"
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Martin Starr, Kumail Nanjiani, Thomas Middleditch and Zach Woods, "Silicon Valley"
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Thomas Middleditch, "Silicon Valley"
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Thomas Middleditch, "Silicon Valley"
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Kumail Nanjiani, "Silicon Valley"
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Kumail Nanjiani, "Silicon Valley"
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Zach Woods, "Silicon Valley"
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Zach Woods, "Silicon Valley"
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Jussie Smollett, "Empire"
Jussie Smollett, "Empire"
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Yael Grobglas, "Jane The Virgin"
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Justin Baldoni, "Jane The Virgin"
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Jaime Camil, "Jane The Virgin"
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Travis Van Winkle, "The Last Ship"
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Suzanne Cryer, "Silicon Valley"
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Elvis Nolasco, "American Crime"
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Richard Cabral, "American Crime"
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"American Crime" creator John Ridley
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"American Crime" creator John Ridley
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Anthony Mendez, "Jane The Virgin"
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Kether Donohue, "You're The Worst"
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Stephen Bishop, "Being Mary Jane"
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Sasha Alexander, "Rizzoli & Isles"
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Richard Brancatisano, "Chasing Life"
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Joelle Carter, "Justified"
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Joe Morton, "Scandal"
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Titus Welliver, "Bosch"
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Jason Gedrick, "Bosch"
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Beth Riesgraf, "Complications"
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Breeda Wool, "UnREAL"
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Christopher Larkin, "The 100"
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Cas Anvar, "The Expanse"
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"Modern Family" Producer Chris Lloyd
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Erica Ash, "Survivor's Remorse"
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RonReaco Lee, "Survivor's Remorse"
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"The Thirteen" Executive Producer Jim Agnew
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"The Thirteen" Executive Producer Jim Agnew
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John DeLuca, "Twisted"
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"Power" producer Courtney Kemp Agboh
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Robert Bailey Jr., "The Night Shift"
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"The Amazing Race" producer Bertram van Munster
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