As a yahoo group member, I've always felt this company was run by a bunch of rank amateurs. No surprise they'd end up making a stupid purchase like this one.
I wonder if Facebook offered 500mil to Intagram or yahoo to Tmblr, would they say no? Who know what's going on under the table.
The hilarity of some of you guys. Yahoo has generated 10s of billions dollars in net profit over the years. How much have you guys generated? Tumblr has 300 million unique visitors per month. A Major newspaper 10 years ago with a circulation of 100k to 250k sold for $20 million. There is alot of power having 300 million eyes on you. If FB is worth $60 billion with 900 million users. Why does Tumblr seem like such a bad deal having 1/3rd the users, but costing 1/60th the price? Do you really think yahoo would spend 1 billion on a company with only 13 million in profit if they didnt have a plan to make money on the back end?
the price of everything in this world is going towards zero. too many people willing to work for nothing or very little. technology which makes everything dirty cheap. well, except London, Monte Carlo and Manhattan real estate: hype strong deflationary force! this is PRECISELY why Fed +ECB are printing like crazy to PREVENT 90% deflation and save the monetary system!
this kid gets it.... at 26 yrs old has hundreds of millions plus... no reason to be a sheep for the man all your life... head of yahoo is like 35. same theory...could retire, never worry about money again. this is why you trade... now get out there and make MILLIONS.......
$13 million in revenue Hmmmmmmm As for unique monthly visitors this number has been all over the place from 28 million to 185 million now to the 300 million you mention. In my opinion a unique visitor doesnt make a difference, its like going into a car dealership to look and not buy, the dealership might have 4389 unique monthly visitors, but only 387 will buy a car. Again $13 million in revenue and they paid $1.1 billion. Something is very wrong. If it were not for the incredible amounts of cheap money and low interest rates tumblr would still be sitting quietly and if they were bought they wouldn't even receive 9 figures. Cheap money is pushing ludicrous values on these companies to be worth more than they actually appear to be.
When you are a CEO or a top guy in a company and come to work at 11AM and leave 2PM and go to a bar and talk about future direction of technology and get 300 million a year as salary and compensation, money loses its value to you. You come to a belief that a gallon of milk costs $2500, a house 45 million, .... and then you screw up the company's money by buying Tumblr. If you do bad, you will be compared with HP's CEO who screwed up 11 Billion so you are still 10 times better .
complacency. just means for us trader to put yahoo on shorting list, and, now the problem is to time and wait as long as it takes so as to go massive. At least we have the direction. so complacent CEO is good for traders. Never thought psychology would be so useful.lol. who else should we watch for?
Agreed. Not only people are available to work for nothing/little, but they also want to spend nothing/little and care about their time rather than material things.They also don't want risks and hassles. Neither the FED,nor the ECB,nor any institution can do anything to stop the deflationary force that derives.
how is that buyout on tumblr going....as I predicted once again...Yahoo got ripped the F$ck offfff when they paid over a billion hahahahaha.... They try to jump in on every new trend and fail....as I said 3 years ago the company was only worth maybe $50 million or less but you paid a $1,000,000,000 hahahh fu$king fools....