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Yahoo's (YHOO) board has approved a $1.1B all-cash deal to acquire Tumblr, the WSJ reports....

Yahoo's (YHOO) board has approved a $1.1B all-cash deal to acquire Tumblr, the WSJ reports. (previous)
Comments (23)
  • DoctoRx
    , contributor
    Comments (1280) | Send Message
     
    If Dan Loeb is good with this, so am I.
    19 May 2013, 01:00 PM Reply Like
  • tmoney094
    , contributor
    Comments (156) | Send Message
     
    While I like that Yahoo is pushing more into social networking type sites, this seems like a non-factor, in my opinion. I'm curious to see how they expect to make money off of this, advertisements all over the blogs? Pay to not have ads on your blog?

     

    I'm not a Yahoo shareholder but I'm a big fan of the company, just asking questions. Like DoctoRx said, obviously they have a plan.
    19 May 2013, 01:44 PM Reply Like
  • Patent News
    , contributor
    Comments (1312) | Send Message
     
    how do you know dan loeb voted for it?
    19 May 2013, 01:45 PM Reply Like
  • pjwraw
    , contributor
    Comments (29) | Send Message
     
    Usually a stock goes down after a purchase because of debt. How are they paying for this? Will be interesting to see price action early in the week. I am a shareholder and really like the ceo so hope yahoo continues to climb.
    19 May 2013, 02:40 PM Reply Like
  • pjwraw
    , contributor
    Comments (29) | Send Message
     
    I see it is an all cash deal and it bothers me that yahoo is spending 1/3 of its cash to do this
    19 May 2013, 02:59 PM Reply Like
  • 71324
    , contributor
    Comments (322) | Send Message
     
    one/sixth. They had $6.3 at the end of Q1 2013.
    20 May 2013, 11:09 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    What's tumblr (rhetorical question). Seems like an overpriced deal.
    19 May 2013, 03:33 PM Reply Like
  • Kyle Spencer
    , contributor
    Comments (998) | Send Message
     
    Not with the Alibaba IPO on the horizon.

     

    I don't think most investors truly grasp the significance of this acquisition due to the fact that they're older than the target audience and are therefore behind the curve. Tumblr is the most popular website since YouTube with the sub-25 population. $1 billion is NOTHING.
    19 May 2013, 03:41 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    I would counter that by saying that tumblr has a low barrier to entry, targeted toward "entry-level" blogging driven by visual media. I stand by my comment that $1.1B was way overpriced. Who was the negotiator?
    19 May 2013, 04:03 PM Reply Like
  • tmoney094
    , contributor
    Comments (156) | Send Message
     
    While it may be the most popular website since Youtube, it has a very targeted audience and not all sub-25 users like Tumblr. Although a small sample (~70 or so) I do not have one friend that has a Tumblr nor ever mentions Tumblr...and I am 19. It may be a coincidence.
    19 May 2013, 04:07 PM Reply Like
  • bhttsl
    , contributor
    Comments (470) | Send Message
     
    Interesting comments:
    http://dthin.gs/18apPAC

     

    "More important is that then and now, Google viewed YouTube as a nice complement to its core business, which has never flagged. For Marissa Mayer, it’s a crucial part of her strategy to bring new eyeballs to a faded brand."
    It's all about page views.
    19 May 2013, 06:14 PM Reply Like
  • Kyle Spencer
    , contributor
    Comments (998) | Send Message
     
    Growth like this is coming from somewhere.

     

    http://bit.ly/YTGcia
    19 May 2013, 10:14 PM Reply Like
  • redarrow5150
    , contributor
    Comments (990) | Send Message
     
    Page views? Advertisers don't care about page views it's about clicks to advertisements. The idea that tumbler is going to get more people to use Yahoo (the main portal hub) is plain stupid. You need to keep the main portol fresh and relevant which yahoo has not done very well. Yahoo is trying to be mass media with the internet and it doesn't work (nor does AOL) for that matter.
    19 May 2013, 10:50 PM Reply Like
  • XRTrader
    , contributor
    Comments (609) | Send Message
     
    Red - your comment implies you see no correlation between page views and clicks. That's clearly to true. Tumblr can become a great asset for someone, assuming yahoo doesn't ruin it.
    20 May 2013, 06:27 AM Reply Like
  • redarrow5150
    , contributor
    Comments (990) | Send Message
     
    I would equate what Yahoo bought to what "if" McDonalds might purchase like Ruth's Steakhouse. Yep their both restaurants but the demographics of each is vastly different and the synergy wouldn't work because the business is too different.
    20 May 2013, 08:18 AM Reply Like
  • bhttsl
    , contributor
    Comments (470) | Send Message
     
    @Patent News
    The reply link to your post is not showing.

     

    Everyone knows that Dan Loeb calls the shots at Yahoo, and everyone nods their head in agreement. MM probably recommended tmblr to the board, and after due diligence, it became a strategic imperative to acquire them. The obvious positive is the demographics, however, the user generated content and mobile are more important. Private equity valued the prior round of funding at over $800 million, so a small premium is to be expected.

     

    Always go back to comparative valuations. MSFT paid $8.5 billion for an all cash acquisition of Skype, two years ago.
    19 May 2013, 06:04 PM Reply Like
  • redarrow5150
    , contributor
    Comments (990) | Send Message
     
    Yes MSFT always know for it's "Midas Touch" when they buy something. Two years ago they bought Skype and what has been the result of that? (crickets chirping)
    19 May 2013, 08:41 PM Reply Like
  • David_Ng
    , contributor
    Comments (5) | Send Message
     
    Look like that YHOO will hit $30/share very soon
    19 May 2013, 07:49 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (8153) | Send Message
     
    ...and how much in net profits will Tumblr push to Yahoo's bottom line?
    19 May 2013, 07:49 PM Reply Like
  • redarrow5150
    , contributor
    Comments (990) | Send Message
     
    When it's all said and done Yahoo is nothing more than a portal hub much like AOL. If Mayer wasn't a hot blond CEO everybody would be scruntizing this CEO like they did the others.
    19 May 2013, 08:12 PM Reply Like
  • deercreekvols
    , contributor
    Comments (5145) | Send Message
     
    Will this latest purchase do anything to improve the quality of the content on Yahoo?
    I am all for Ms. Mayer spending a few thousand dollars on editors and writers in an effort to move Yahoo past tabloid status.
    19 May 2013, 08:37 PM Reply Like
  • bhttsl
    , contributor
    Comments (470) | Send Message
     
    http://nyti.ms/17RSsF8
    The Tumblr and Instagram Deals: A Tale of the Tape

     

    By MICHAEL J. DE LA MERCED
    Yahoo Is Planning to Buy Tumblr for $1.1 Billion
    .
    By agreeing to buy Tumblr for about $1.1 billion, Yahoo has struck the biggest social media deal in years, putting it up against Facebook‘s $1 billion* acquisition of Instagram.

     

    But who got the better deal?

     

    Let’s take a look at what each company acquired through its deal-making.

     

    Instagram
    •Founded in 2010
    •Roughly 30 million users at the time of the acquisition
    •13 employees
    •Approximately zero revenue
    •Last pre-deal fundraising round valued company at $500 million
    •Investors included Sequoia Capital, Thrive Capital and Greylock Capital

     

    Tumblr
    •Founded in 2007
    •About 108.4 million blogs
    •175 employees
    •About $13 million in revenue in 2012
    •Last pre-deal fundraising round valued company at about $800 million
    •Investors included Spark Capital, Union Square Ventures and Sequoia Capital

     

    *(Because the offer was in cash and stock, and the value of Facebook shares fell, the deal ended up being worth closer to $700 million.)
    19 May 2013, 11:13 PM Reply Like
  • redcloud54
    , contributor
    Comments (21) | Send Message
     
    Tumblr will die, as people flee the new advert-littered landscape.

     

    Okay, maybe it won't die, but it will be lessened, just as the Sundance and IFC channels were when bought by AMC.

     

    Actually, that's a bad analogy. Those two vital entities were utterly destroyed as their original concepts were ripped to shreds. They make a lot of money as content recyclers now, but they are worthless as creative outlets.
    20 May 2013, 07:41 AM Reply Like
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