What is a "goodwill impairment?"

[Parliament 14258]

I own some shares in a company that just did a $2.5B goodwill impairment; no other details yet.  What is that?  A writedown?

ETA
 Just to get it out of the way:

[Dbeasy 15048]

Non cash write down of an intangible asset value, most likely associated with an acquisition that is no longer worth what it used to be. 

[Parliament 14258]

Well that makes perfect sense.  Thank you.

[Wally Fairway 5547]

It is how they tell you that they spent too much for something they bought in the past

[Guest]

2 hours ago, Parliament said:

I own some shares in a company that just did a $2.5B goodwill impairment; no other details yet.  What is that?  A writedown?

ETA
 Just to get it out of the way:

It’s when, as a gesture of goodwill, I impair your wife’s ability to shit right for a week. 

[Hefeweizen 5320]

It’s similar to what fidelity just did to their investment in Twitter.  Essentially a loss in value.

Edited July 25, 2023 by Hefeweizen
Wording implied I read their financial statement on it, I haven’t.

[Neonmoon 38129]

By changing Twitter to X, the company erased all the built up Goodwill it had over the past 17 years. People like brands and tend to stay loyal to them. So if you damage the brand, or change it altogether, it hurts value. 

 

[Js1 85321]

It's when you get drunk and go thrift shopping. 

[Neonmoon 38129]

31 minutes ago, Js1 said:

It's when you get drunk and go thrift shopping. 

[Cheeseweasel 26438]

4 hours ago, Dbeasy said:

Non cash write down of an intangible asset value, most likely associated with an acquisition that is no longer worth what it used to be. 

And very likely was never worth it to begin with. Good Will is a catch all for what you are overpaying in an acquisition. 

[Wally Fairway 5547]

On 7/25/2023 at 2:18 PM, Neonmoon said:

By changing Twitter to X, the company erased all the built up Goodwill it had over the past 17 years. People like brands and tend to stay loyal to them. So if you damage the brand, or change it altogether, it hurts value. 

 

But don't you get it, X is a really supercool letter; probably the coolest letter in the alphabet, in any language, ever.
Sincerely, Elon and his fanbois

[Gatorubet 30234]

On 7/25/2023 at 9:54 AM, Parliament said:

I own some shares in a company that just did a $2.5B goodwill impairment; no other details yet.  What is that?  A writedown?

So you invested in “Slap ya Silly - the Zach Smith Ohio Barbecue Sauce”?

 

 

 

too soon?

[Parliament 14258]

13 hours ago, Gatorubet said:

So you invested in “Slap ya Silly - the Zach Smith Ohio Barbecue Sauce”?

 

 

 

too soon?

Worse.  I bought stock in my employer.

[NeverMarryAStripper 21905]

You should never invest in a company dumb enough to hire you

[Hefeweizen 5320]

Oh shit I am so fucked then.

[Rudiger 1162]

It was the poorly received sequel to Good Will Hunting. 

[Trey3216 15346]

4 minutes ago, Rudiger said:

It was the poorly received sequel to Good Will Hunting. 

Or it's prequel...Forrest Gump.