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A business without a proper model, lack of revenue, losing money, fighting off pornography and spammers is worth 1.1 billion in cash to Yahoo. The users will fl

A business without a proper model, lack of revenue, losing money, fighting off pornography and spammers is worth 1.1 billion in cash to Yahoo. The users will flee, they always do. The engineering dept. will be hired out, it always is. All that Yahoo will have is a domain, a database filled with cats and naked people, and a real problem on its hands. Bad move, Yahoo. The way to re-build Yahoo is not to buy zombie businesses. It is to give the engineering dept. freedom to innovate.

deleted 13y ago
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return0 13y ago
As always? is this the rule? Given precedents of instagram etc, it doesn't seem like an improbable price. However, how is tumblr fighting porn? I thought they actively encouraged it. It's a big part of tumblr for sure (and big part of the value yahoo pays for).
- burgreblast 13y ago
  Instagram was growing rapidly and threatening FB as the place to share pics. Tumbler is declining.
imjk 13y ago
Yeah, we've all seen this story played out many times. It's a move that's good for the short term but terrible for the long term.
tnuc 13y ago
What you are describing sounds like what happened to GeoCities.
- adventured 13y ago
  Tumblr is GeoCities, circa 2010. And that's why Yahoo purchased them of course. Nothing has changed about the nature of what Yahoo is. The only thing Mayer is doing is collecting a new group of properties to replace the stagnant old ones. It's not brilliant and it won't get the earnings flowing.
  - baby 13y ago
    While I do agree that Tumblr is the new Geocities. I think you're wrong when you say it's not a good idea buying it. Yahoo is building something very different from Google and Bing by buying tumblr.
    - orangethirty 13y ago
      Different? No. Its simply repeating past mistakes. Tumblr makes no financial sense. If they wanted to bring in talent to innovate, they could simply buy fifty bootstrapped startups for 5% of the Tumblr deal. That would net them the people they would have wanted. The only reason Tumblr is being bought is due to how Yahoo is showing off to the market. The CEO is simply trying to position Yahoo as bullish. Wall street will rejoice, their stock goes up (for a short time), and the shareholders rejoice. But this sort of thing does not last a long time.
      - baby 13y ago
        I think it's not about bringing money to the company, but giving a new image to Yahoo. People are going to associate tumblr, which is something pretty new and cool on the internet, with yahoo. Which is? Maybe a mail? A search engine? Nobody knows anymore.

deleted 13y ago

[deleted]

return0 13y ago

As always? is this the rule? Given precedents of instagram etc, it doesn't seem like an improbable price. However, how is tumblr fighting porn? I thought they actively encouraged it. It's a big part of tumblr for sure (and big part of the value yahoo pays for).

burgreblast 13y ago
Instagram was growing rapidly and threatening FB as the place to share pics. Tumbler is declining.

imjk 13y ago

Yeah, we've all seen this story played out many times. It's a move that's good for the short term but terrible for the long term.

tnuc 13y ago

What you are describing sounds like what happened to GeoCities.

adventured 13y ago
Tumblr is GeoCities, circa 2010. And that's why Yahoo purchased them of course. Nothing has changed about the nature of what Yahoo is. The only thing Mayer is doing is collecting a new group of properties to replace the stagnant old ones. It's not brilliant and it won't get the earnings flowing.
- baby 13y ago
  While I do agree that Tumblr is the new Geocities. I think you're wrong when you say it's not a good idea buying it. Yahoo is building something very different from Google and Bing by buying tumblr.
  - orangethirty 13y ago
    Different? No. Its simply repeating past mistakes. Tumblr makes no financial sense. If they wanted to bring in talent to innovate, they could simply buy fifty bootstrapped startups for 5% of the Tumblr deal. That would net them the people they would have wanted. The only reason Tumblr is being bought is due to how Yahoo is showing off to the market. The CEO is simply trying to position Yahoo as bullish. Wall street will rejoice, their stock goes up (for a short time), and the shareholders rejoice. But this sort of thing does not last a long time.
    - baby 13y ago
      I think it's not about bringing money to the company, but giving a new image to Yahoo. People are going to associate tumblr, which is something pretty new and cool on the internet, with yahoo. Which is? Maybe a mail? A search engine? Nobody knows anymore.