Posted on 05/19/2013 1:57:56 PM PDT by BenLurkin
It looks like Yahoo has offered to buy Tumblr for the sticker-shock price of $1.1 billion.
Maybe we shouldn't be surprised, since just a few days ago Yahoo CFO Ken Goldman spoke about the need for the company (YHOO) to be "cool" again. But Yahoo shareholders invest for returns, not for cool. Yahoo employees have a big chunk of their net worth tied to their stock. It may be sexy for Yahoo to buy Tumblr, but will it have a positive return?
I believe the answer is no.
To be sure, the power of math and corporate finance can build a good investment case for Yahoo/Tumblr. Yahoo is a $28 billion media business with cash to spend and a substantial focus on display advertising. Tumblr represents a ton of page views ripe for display monetization. It's a bulk play -- Tumblr adds mass
...
You can use the math to get the hurdle rate low enough to make the acquisition seem like a no-brainer, but I believe that there are many strategic challenges unique to Tumblr that make this acquisition a risky one. If I were Yahoo, I would not buy Tumblr for $1.1 billion.
Here are five big reasons why:
(Excerpt) Read more at finance.fortune.cnn.com ...
to show just how Un-cool I must be, what the heck is a Tumblr? (Of course, if it sells for $1.1 BILLION dineros then it is obviously something I’ve never happened to pick up at the GreatObamaDepression shopping mall, aka the Starvation Army Thrift Store...)
I use tumblr a LOT for fan activities and understand it’s used for everything from recipes to porn. I’m there for Harry Potter stuff but there are lots of Sherlock, Dr Who, etc stuff. Tumblr people are not happy about this.
ok i will go see if i can connect to it (I assume it is a website of some kind?)
ok i will go see if i can connect to it (I assume it is a website of some kind?)
i see you have to sign up with the site first before you can look at it.
i do not participate in such sites.
so I guess I will never know what’s “behind the green door” at Tumblr, ... ha!
I know what amazon is, but I’ve never heard of Tumblr.
-
Tumblr is a microblogging platform and social networking website.
The service allows users to post multimedia and other content to a short-form blog.
Users can follow other users’ blogs, as well as make their blogs private.
Much of the website’s features are accessed from the “dashboard” interface, where the option to post content and posts of followed blogs appear.
As of May 19, 2013, Tumblr has over 108 million blogs.
“Tumblr, stylized in their logo as tumblr., is a microblogging platform and social networking website, owned and operated by Tumblr, Inc. The service allows users to post multimedia and other content to a short-form blog. Users can follow other users’ blogs, as well as make their blogs private.”
https://en.wikipedia.org/wiki/Tumblr
If it makes you feel any better, I still don’t know what it is.
Private, sure. Just to you, your friends, Tumblr, Yahoo, DHS, IRS, etc.
Thanks. I am not sure what it is but... I avoid websites that require you to sign up first to see what they are...
even at a brothel, you can look first and see what is on offer (I’m told, anyway)
so I consider such a website to be at least one notch beneath a whorehouse...
(ten levels beneath a whorehouse and you find Congress, of course)
What is Tumblr?
Marissa Mayer is Ron Johnson in drag. She will do to Yahoo what Johnson did to JC Penny.
Maybe she should start fixing Yahoo first before making major acquisitions. The Yahoo home page and message board layouts have been a disaster for years. The recent “improvements” to the message boards are anything but.
The home page and message boards have become worse instead of better - do they actually have anyone who knows how a computer works? - if they do not address these issues in the next few months - I’m done with them forever !
I was just surprised that it wasn’t tumblr buying yahoo, they’re the one with the hot product that people actually use.
That just shows how OutOfIt I must be, ha! I never heard of Tumblr before.
but I STILL won’t use it. I signed up for a similar website once and almost immediately started to get up to 40 “erectile dysfunction” and “sexual stamina powerhouse” magic pill advertisements DAILY in my inbox
some of these sites sell your name to the purvayors of these wonderful products of modern science. I’ve no use of them (interpret any way one wishes, ha!) and now can’t figure out how to get this blizzard of unwanted adverts Stopped!?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.