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I suspect the true total cost was a fair bit higher due to a hosting arrangement. I'd imagine Tumblr remained on Yahoo bare metal servers for quite some time af
by evanelias 6y ago
I suspect the true total cost was a fair bit higher due to a hosting arrangement. I'd imagine Tumblr remained on Yahoo bare metal servers for quite some time after the sale. If so, Automattic would have had to pay a significant monthly fee for this, given Tumblr's large infrastructure footprint.
That arrangement would have been quite appealing for Verizon, since by this time there was likely a surplus of aging bare metal servers in Yahoo's datacenters, and these would otherwise be difficult for Verizon to monetize.
disclosure: worked for Tumblr but left long before this sale and not directly familiar with any of the specifics of the deal
- just_observing 6y ago> I suspect the true total cost was a fair bit higher due to a hosting arrangement. Untrue. When the goal is to buy Blogger - a goal that is being progressed towards by Automattic - money saved on the Tumblr acquisition is useful.
- evanelias 6y agoHuh, OK. So you're saying the $3m price included the many months of continued hosting and bandwidth in Yahoo's datacenter? Quite a bad deal for Verizon if so, especially accounting for routine hardware maintenance.
- philistine 6y agoMarco?
- evanelias 6y agoHuh? What about him? I'm not Marco, if that's what you're asking? I post here with my full real name and have links in my HN profile...