Yahoo (YHOO) confirms its deal to acquire Tumblr for $1.1B in cash. "Per the agreement and our promise not to screw it up, Tumblr will be independently operated as a separate business. David Karp will remain CEO." Yahoo expects the combination to grow its audience by 50% and grow traffic by 20%. Up earlier, Yahoo now off 1% premarket. (PR) [View news story]
It doesn't appear they disclosed the legal representations they made to Karp and Tumblr. But this is an entirely new Yahoo mgmt team and a new board. They mean to succeed and don't want to mess things up for future acquisitions.
More on Yahoo/Tumblr: Kara Swisher reports Tumblr founder/CEO David Karp "will stay at Yahoo for four years at least and retain much control over the service." There are concerns about how Yahoo will deal with Tumblr's mountains of adult content without alienating either users or advertisers; Peter Kafka argues they're overblown, since marketers decide which blogs to advertise on. Discussing comparisons between Tumblr and Yahoo's failed 1999 acquisition of Geocities, Tristan Louis notes Tumblr has seen top execs jump ship. But he adds Geocities faltered in part because a flood of ads drove users away; Tumblr seems to be avoiding that pitfall. [View news story]
With Tumblr speculation swirling, Yahoo (YHOO -0.3%) has scheduled a Monday evening NYC press event; CNBC reports Marissa Mayer will speak. Wells Fargo gives an overview of Tumblr's opportunities/risks. The firm notes comScore estimates Tumblr had 115M PC unique visitors in April (+85% Y/Y) and 14.5M mobile visitors (+227%), that engagement is strong, and that Tumblr is targeting $100M+ in 2013 revenue following just $13M in 2012 (ad sales are only starting to ramp). Wells thinks Yahoo could monetize Tumblr the way it did Flickr, but also points out the site has a ton of "provocative and even salacious material" that could deter brands. [View news story]
They could separate the sexy stuff into a different/related URL; or they could sell that franchise to minimize the acquisition cost.
More on Yahoo/Tumblr: Forbes' Jeff Bercovici reports talks are "proceeding rapidly and likely to result in an offer" as soon as Marissa Mayer can get board approval. He adds Mayer would prefer an acquisition over some other kind of deal, and is trying to allay Tumblr CEO David Karp's fears of being "absorbed into a behemoth." Tumblr is also said to have held talks with Facebook and Microsoft, but a lockup agreement with Yahoo makes them irrelevant. BI's Nicholas Carlson observes Tumblr sources who were happy to talk with him 3 weeks ago have gone silent. [View news story]
If I were Karp, I'd want some cash, tho YHOO is liquid and unrestricted stock is fine too. Yahoo has plenty of cash and no debt, and they've been buying in their stock, so they might prefer to pay as much cash as possible. That would send a message to the Street that they believe their stock is undervalued. Tumblr plus Flickr will be a powerful entity.
Yahoo's (YHOO) NYC event will be focused on Flickr updates rather than Tumblr, Bloomberg reports. This, of course, doesn't preclude a Tumblr deal from being announced at some other time. Marissa Mayer reportedly doubled the size of long-neglected Flickr's engineering team last summer, and new Flickr apps have launched to positive reviews. However, Flickr's online photo market share is now well below that of Facebook/Instagram. [View news story]
I think there's lot more tech deal-making to come. GOOG and FB have cheap currency (shares and/or borrowing capacity) and want to Hoover up the best stuff.
After some hesititation, perhaps, my guess- just a guess, of course, is that the Street will look at the current guesstimate of YouTube's valuation ($20B), how well the speculative AliBaba deal worked out, and bid YHOO shares up. This apparent deal shows that Marissa can make things happen and might be on her way to reshaping YHOO along the lines of GOOG.
Buy Yahoo: The Party Has Not Yet Started [View article]
Nice summary. Didn't realize the success of the weather app. A WAG is that this reflects Mayer's attention to detail, and that more such successes are on the way.
Not sure about your point on RSI. I took partial profits earlier this week around $27.30, but see this 3-4% selloff as possibly all that Mr. Market will allow. Such is often the nature of fundamentally-driven bull moves.
Yahoo (YHOO) is in "serious talks" to buy social blogging service Tumblr for as much as $1B, multiple sources tell AdWeek. Kara Swisher also reports talks are happening, but is more circumspect, stating they could result in a partnership, investment, acquisition, or nothing at all. Tumblr, which claims 100M+ blogs and (as of Nov.) ~170M monthly visitors (up over 3x from Jan.), would give Yahoo a big source of user-generated content to integrate and monetize, and would strengthen its mobile presence. It would also (as Swisher notes) mesh with Yahoo's efforts to win back younger Web users. [View news story]
Positive for YHOO. Even given a confidentiality agreement, the more they kick the tires of the likes of Tumblr, the more knowledgeable they get about how to chart Yahoo's comeback. You go girl!
Juicy Oil Bargains - Part 3: Which Is Best Among The Best? [View article]
Thanks for the article. I just had breakfast with an attorney with secondhand knowledge of BP's actions during the GOM spill. So BP is out. CVX- remember their environmental disasters, http://bit.ly/10x9z6g So they're out. TOT- too many rosy forecasts for production growth, never seems to happen as projected. XOM- everyone's fave, so I'd be neutral. RD: committed to the dividend, appears to be a responsible company-- very high dividend yield and very low P/E: so I bought it w/o benefit of your analysis. Having read this, I am going to lower my cash reserves and buy more. Thanks again!
Alibaba could be worth $95B post-IPO, thinks Reuters' John Foley after doing some quick math - that would give Yahoo (YHOO - $27.4B market cap) a $22.8B stake. Foley's assumptions: the Chinese e-commerce market grows 35%/year for the next 2 years (less than 2012's growth); Alibaba keeps an 80% transaction share and 30% op. margin, while roughly doubling its take rate to 5% (still well below eBay's); and (like Tencent) it's valued at 25x forward EPS. One big caveat: Foley assumes Alibaba, which depends on ad sales, will either start charging merchants or raise ad prices via targeted ads. Oppenheimer has valued Alibaba at $77B. (The Economist)[View news story]
As far as my personal interests go, both valuations are bullish for YHOO. Goldman has a PT of $30 with a lower Alibaba IPO price than anything suggested in this article. So I look at YHOO as a continued hold, and continue to look for $30, perhaps by yearend. (Perhaps sooner?)
Yahoo Stock Can Now Aim Higher Than $30 [View article]
bhttsl: I certainly have noted Y!Japan's and Alibaba's growth rates.
Nice observation about Dan Loeb and choice of MM as "front woman" for a media company. What male investor/PM/MD doesn't love looking at her? Plus she's not over-sexy and as a mother, can appeal to the many female investors out there. Brilliant indeed.
Another day, another Yahoo (YHOO) acqui-hire is announced. The target this time is mobile game developer Loki Studios, whose engineering team will be joining Yahoo. Surveying the non-stop purchases, Pando Daily's Erin Griffith declares Yahoo has become "a safe haven for VC rejects." Specifically, consumer-facing startups featuring "talented teams of fewer than 10 employees," but which lack "any truly notable traction," and have been unable to obtain a Series A funding round. (yesterday) [View news story]
Maybe. Yahoo can partner with most of the companies your linked (and interesting) article names. FWIW my take is that the Street "gets" Marissa's strategy and keeps repricing the stock on up as it sees this acqui-hires get done, so she has convinced the deciders-in-chief the company is turning in the right direction.
Yahoo (YHOO) confirms its deal to acquire Tumblr for $1.1B in cash. "Per the agreement and our promise not to screw it up, Tumblr will be independently operated as a separate business. David Karp will remain CEO." Yahoo expects the combination to grow its audience by 50% and grow traffic by 20%. Up earlier, Yahoo now off 1% premarket. (PR) [View news story]
More on Yahoo/Tumblr: Kara Swisher reports Tumblr founder/CEO David Karp "will stay at Yahoo for four years at least and retain much control over the service." There are concerns about how Yahoo will deal with Tumblr's mountains of adult content without alienating either users or advertisers; Peter Kafka argues they're overblown, since marketers decide which blogs to advertise on. Discussing comparisons between Tumblr and Yahoo's failed 1999 acquisition of Geocities, Tristan Louis notes Tumblr has seen top execs jump ship. But he adds Geocities faltered in part because a flood of ads drove users away; Tumblr seems to be avoiding that pitfall. [View news story]
Yahoo's (YHOO) board has approved a $1.1B all-cash deal to acquire Tumblr, the WSJ reports. (previous) [View news story]
With Tumblr speculation swirling, Yahoo (YHOO -0.3%) has scheduled a Monday evening NYC press event; CNBC reports Marissa Mayer will speak. Wells Fargo gives an overview of Tumblr's opportunities/risks. The firm notes comScore estimates Tumblr had 115M PC unique visitors in April (+85% Y/Y) and 14.5M mobile visitors (+227%), that engagement is strong, and that Tumblr is targeting $100M+ in 2013 revenue following just $13M in 2012 (ad sales are only starting to ramp). Wells thinks Yahoo could monetize Tumblr the way it did Flickr, but also points out the site has a ton of "provocative and even salacious material" that could deter brands. [View news story]
More on Yahoo/Tumblr: Forbes' Jeff Bercovici reports talks are "proceeding rapidly and likely to result in an offer" as soon as Marissa Mayer can get board approval. He adds Mayer would prefer an acquisition over some other kind of deal, and is trying to allay Tumblr CEO David Karp's fears of being "absorbed into a behemoth." Tumblr is also said to have held talks with Facebook and Microsoft, but a lockup agreement with Yahoo makes them irrelevant. BI's Nicholas Carlson observes Tumblr sources who were happy to talk with him 3 weeks ago have gone silent. [View news story]
Yahoo's (YHOO) NYC event will be focused on Flickr updates rather than Tumblr, Bloomberg reports. This, of course, doesn't preclude a Tumblr deal from being announced at some other time. Marissa Mayer reportedly doubled the size of long-neglected Flickr's engineering team last summer, and new Flickr apps have launched to positive reviews. However, Flickr's online photo market share is now well below that of Facebook/Instagram. [View news story]
Yahoo (YHOO) update: The board will meet Sunday night to decide on a $1.1B all-cash deal for Tumblr, according to AllThingsD. (earlier) [View news story]
Buy Yahoo: The Party Has Not Yet Started [View article]
Not sure about your point on RSI. I took partial profits earlier this week around $27.30, but see this 3-4% selloff as possibly all that Mr. Market will allow. Such is often the nature of fundamentally-driven bull moves.
Yahoo (YHOO) is in "serious talks" to buy social blogging service Tumblr for as much as $1B, multiple sources tell AdWeek. Kara Swisher also reports talks are happening, but is more circumspect, stating they could result in a partnership, investment, acquisition, or nothing at all. Tumblr, which claims 100M+ blogs and (as of Nov.) ~170M monthly visitors (up over 3x from Jan.), would give Yahoo a big source of user-generated content to integrate and monetize, and would strengthen its mobile presence. It would also (as Swisher notes) mesh with Yahoo's efforts to win back younger Web users. [View news story]
Even given a confidentiality agreement, the more they kick the tires of the likes of Tumblr, the more knowledgeable they get about how to chart Yahoo's comeback.
You go girl!
Juicy Oil Bargains - Part 3: Which Is Best Among The Best? [View article]
So they're out. TOT- too many rosy forecasts for production growth, never seems to happen as projected. XOM- everyone's fave, so I'd be neutral. RD: committed to the dividend, appears to be a responsible company-- very high dividend yield and very low P/E: so I bought it w/o benefit of your analysis. Having read this, I am going to lower my cash reserves and buy more. Thanks again!
Alibaba could be worth $95B post-IPO, thinks Reuters' John Foley after doing some quick math - that would give Yahoo (YHOO - $27.4B market cap) a $22.8B stake. Foley's assumptions: the Chinese e-commerce market grows 35%/year for the next 2 years (less than 2012's growth); Alibaba keeps an 80% transaction share and 30% op. margin, while roughly doubling its take rate to 5% (still well below eBay's); and (like Tencent) it's valued at 25x forward EPS. One big caveat: Foley assumes Alibaba, which depends on ad sales, will either start charging merchants or raise ad prices via targeted ads. Oppenheimer has valued Alibaba at $77B. (The Economist) [View news story]
Yahoo Stock Can Now Aim Higher Than $30 [View article]
Nice observation about Dan Loeb and choice of MM as "front woman" for a media company. What male investor/PM/MD doesn't love looking at her? Plus she's not over-sexy and as a mother, can appeal to the many female investors out there. Brilliant indeed.
Why A Stock Market Bubble Is Forming Right Now [View article]
AAPL-2012
Stocks- 2013?
Apple: The Bottom Has Yet To Be Reached [View article]
Another day, another Yahoo (YHOO) acqui-hire is announced. The target this time is mobile game developer Loki Studios, whose engineering team will be joining Yahoo. Surveying the non-stop purchases, Pando Daily's Erin Griffith declares Yahoo has become "a safe haven for VC rejects." Specifically, consumer-facing startups featuring "talented teams of fewer than 10 employees," but which lack "any truly notable traction," and have been unable to obtain a Series A funding round. (yesterday) [View news story]