3 ms·

Ah yes, Yahoo investing in another company with no hope of actualizing it's valuation by actual revenue (as opposed to investors bloating it until an IPO). I'm

• anon808 12y ago
  Revenue!? Usually owners realize value by getting a dividend from earnings. Can't believe we're back at this point, again.
  • pyre 12y ago
    While revenue doesn't mean much if it doesn't exceed expenses, if you have expenses and no revenue, good luck realizing dividends from earnings...
    • anon808 12y ago
      If you have expenses and no revenue, by definition there's no earnings.
• bduerst 12y ago
  "Revenue" isn't the only thing that companies compete for. Many of these online services companies (Google, Facebook, Yahoo) compete for user timeshare - e.g. you're awake 16 hours a day, how many of those hours are spent under company X's umbrella? Tumblr had doubled their number of blogs and grown their userbase by 1/3 since being acquired. The jury is still out on whether it was a good or bad investment.
  • jgalt212 12y ago
    I read Tumblr was a few weeks away from running out of cash at the time Yahoo bought them. While I agree the jury is still out on the Tumblr/Yahoo acquisition, I do think they could have bought a nearly insolvent company a bit cheaper than they did. That being said, maybe they did get it on the cheap if WhatsApp went for $19B.
    • argonaut 12y ago
      Exactly. How do you know the price they acquired Tumblr for wasn't its "insolvent" price? There was probably competition for the deal - passing in the hope of getting a lower price is dangerous if you know other players might snap up Tumblr.
• mmanfrin 12y ago
  ... and Alibaba.