Here we are again. Yahoo buying tumblr for $1.1 billion cash, the company is spending Tens of millions of dollars and only had $13 million in revenue and is valued at over $1 billion dollars. What the fuck is wrong here, everything. Yahoo making a stupid decision to jump into another area they feel they missed out on just like buying flikr and losing out to instagram ....yahoo thinks they can buy talent yet all they do is buy into hype....yahoo over paid by hundreds of millions of dollars and you can thank BUBBLE ben bernanke for the cheap money he is pumping the system with that is valuing these companies at such ludicrous prices. This company is worth no more than $50 million at most ..... http://mobile.nytimes.com/2013/05/20/technology/yahoo-to-buy-tumblr-for-1-1-billion.html Yahooâs board has agreed to buy Tumblr, the popular blogging service, for about $1.1 billion in cash, people with knowledge of the agreement said on Sunday.The deal, sealed at a meeting of Yahooâs board, is expected to be announced as soon as Monday, said one of the people, who was not authorized to speak ahead of the announcement.The acquisition is the biggest yet under Yahooâs chief executive, Marissa Mayer, as she tries to reinvent the once-embattled Web pioneerâs fortunes. Under her, the company is seeking to make up for years of missing out on the growing use of social networks and mobile devices.Buying Tumblr, which was founded in 2007 by David Karp, who is 26, is intended to help address that shortfall. A number of well-known tech founders dropped out of college before making millions from their start-ups, but Mr. Karp didnât even make it out of high school, dropping out at age 15.The deal marks Yahooâs seventh acquisition since Ms. Mayer took the helm last year. Starting in July, she began acquiring small start-ups, including OnTheAir, an online video service; Propeld, a maker of location-based apps; and Summly, a newsreading mobile app. In most cases, the acquisitions were made more for the engineering talent than for the products.
Terrible investment. 1,100 million dollars for a company with 13 million revenue. But out of that 13 million how much was actual net profit if any? Dividend payment would have been better.
How about kids flowing into some other new social network , more "cool" than tumblr? Tumblr would be worth zero in 6 months or so. But thats how big corporations work. They can easily spend billions, coz they are too lazy and with huge egos. for $50m they could build a better social network from scratch. who cares its only money
Fox regretted buying Myspace. FB is not so cool with the high school kids now. LNKD, NFLX, etc. trading at insane multiples.
Who still uses tumblr? Marissa Mayer is going to be a disaster, far too young, female, no real business and leadership skills. On the other hand, congrats to the guy who invented the stupid thing and is now a billionaire. This is the new wild west frontier, the real way to make hundreds of millions/billions of dollars, not trading in your pyjamas from home.
Starting and owning a real business, whether it's internet or even a hedge fund, has always been the real way to make big bucks. Most of this trading at home is a sideshow in comparison, though some very rare and gifted individual traders can as much as small corporations employing hundreds of people. Ok, then trade in a pin-striped suit wearing alligator shoes.
Today these companies are started with practically nothing. $50 million is considered too much in my opinion. Yahoo could have put that billion to work somewhere else. If the spx was not up 150% and BUBBLE ben bernanke never pumped the economy with worthless trillions this deal would have never taken place. This was a pathetic investment by yahoo. The 26 year old who invented tumblr and all the investors are laughing so hard now. They know the company isn't worth anything more than $50 million. $1.1 fucking billion dollars for what???? This company doesn't produce anything. Its a blogging site. Wake up yahoo...how are you possibly going to create anything out of this purchase. Ha.
I agree...i'm not sexist or anything but a lot of times when females make it up this far they feel like they have something to prove and goes out and does something extra...like carly fiona with HP and the acquisition of compaq...and of course meg whitman and ebay....what a disaster.