5 ms·
This is another one of those SV deals that simply DO NOT make sense whatsoever. So Yahoo! wants the young audience (check), but what are they going to do? Thro
by dakrisht 13y ago
This is another one of those SV deals that simply DO NOT make sense whatsoever.
So Yahoo! wants the young audience (check), but what are they going to do? Throw ads at young teens (who browse porn and nail art on Tumblr)? Have a "bigger" presence in mobile? Integrate Flickr with Tumblr? Don't get this.
And how does Yahoo! still have cash? Jesus
The acquisition just makes zero sense, Tumblr price (valuation) makes even less sense:
- $15M in revenue (down $85M from the projected 2013 of $100M)
- 175 employees (for what? 150 of them are probably useless with regard to the company)
- Running out of cash (so hey, let's sell for $1B since we'll be worth $100M in 6-months anyway)
Why is SV rushing in to buy this company as, like another user said, the wheels are falling off? Where is the value, yet alone $1B value?
Just stupid SV math.
- neilc 13y agoAnd how does Yahoo! still have cash? Jesus You realize Yahoo! is a profitable company, right?