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Tumblr May Reject Yahoo’s $1.1B Acquisition Offer For Being “Too Low”

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Re: Tumblr May Reject Yahoo’s $1.1B Acquisition Offer For Being “Too Low”

#31
post #19

If I were a Yahoo shareholder, even at a $1.1bn price tag, I would vote against the acquisition. > Tumblr has no real revenue, let alone profit, making it a value dilutive acquisition for Yahoo. > The acquisition price is artificially being inflated by investors who are trying to squeeze Yahoo, who is trying to "turnaround" its profitable business. The $1.1.bn price is already "too high" for Tumblr's true underlying…

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Re: Tumblr May Reject Yahoo’s $1.1B Acquisition Offer For Being “Too Low”

#32
post #25

I've been using tumblr as my blog platform for nearly 4 years because it allows easy mobile posting and via emails which makes my posting easy. Yahoo buying tumblr will ruin tumblr for sure like yahoo has done go the past with Flickr and Delicious. Yahoo need to innovate and make things happen rather than buying everything just because they have money. Just imagine what would have happened to Facebook if Yahoo bought…

WordPress supports Post by email:

Self-hosted: http://codex.wordpress.org/Post_to_your_blog_using_email

WordPress.com: http://en.support.wordpress.com/post-by-email/

Re: Tumblr May Reject Yahoo’s $1.1B Acquisition Offer For Being “Too Low”

#33
post #13

> Tumblr feels that Yahoo’s $1.1 billion offer as “too low” and view it as “only a first offer” And then later in the paragraph: > sources say the company only has a few months of cash runway left. This must be a joke. If you have a few months of cash runway left, $1.1B is more than enough. Seriously. There is no circumstance when this isn't true, unless you have massive non-cash assets on hand. Yes, I'm aware that t…

1 billion is the new 1 million.

Re: Tumblr May Reject Yahoo’s $1.1B Acquisition Offer For Being “Too Low”

#34
I see a lot of people talking about Tumblr's userbase rather than the quality and potential profitibility of this userbase. As someone who has worked in brand management at P&G, i do not see any major consumer brand who's personality fits with lol cats and porn, therefore which major brand are you going to find to put ads next to that crap. Secondly lets take a look at the demographics and LSM's, tumblr is mainly made up of teenagers, you need to look at your ad spend relative to the quality of the demographic.

Start a successful extreme sports website and you will find brands like redbull that's brand fits in with your message, start a music sight and you will find a brand like pepsi that fits in well. Tumblr is all over the place, i have no idea how do you control the message? This website was built to just be cool and over the last six yrs they never tried to tie their identity to the type of revenue model they were anticipating. The reason for this is because they did not think of monetization at all. If you started a magazine back in the day, you would choose your segment and also tie in the magazines identity with the type of ad revenue you want to generate like a house & home magazine, you have home depot etc. This is not a billion dollar company. I am rooting for Marissa but her social media profile is starting to look bigger than her bite.

I will also add that Tumblr did try their had at curated content a few months back but decided to scrap the idea. This shows that they understand the need for more quality consistent content but are unable to execute. Flipboard has totally taken them to school on this front by allowing people to create personal magazines and you find a better quality experience. They need to learn some stuff from Flipboard even though it is not 100% comparing apples to apples.

Re: Tumblr May Reject Yahoo’s $1.1B Acquisition Offer For Being “Too Low”

#35
post #5

Here's my perspective as a hardcore tumblr user - Tumblr is a good example of an 'uncontrolled platform'. What started as a beautiful blogging platform, has now turned into a junkyard of cat memes, 'blurr-photo-in-the-background' quotes and animated GIF thumbnails of movie snapshots and softcore pornography. Of course your feed depends on what/who you subscribe to..but due to the nature of Tumblr's platform, even the…

I have to agree. If Yahoo is offering this much, they need to take it, because I don't believe Tumblr will ever be successfully monetized.

Re: Tumblr May Reject Yahoo’s $1.1B Acquisition Offer For Being “Too Low”

#36
post #30
post #20

In response to some of the critics: For a good user-generated content comparable, YouTube wasn't profitable until around 2010-2011[1], 7 years after its founding. It is, of course, very profitable now and looks like one of the best acquisitions ever made in the internet space. Google only had to fork out $1.65Bn in an all-stock transaction for a company which would now be worth many, many times that (some numbers wou…

How much money does YouTube make? After paying content providers and bandwidth what is the profit margin?

Google owns a LOT of fiber, so they pay pennies on the dollar for bandwidth. It's a pretty perfect marriage.

Re: Tumblr May Reject Yahoo’s $1.1B Acquisition Offer For Being “Too Low”

#38
post #18

Has there ever been an acquisition similar to Tumblr (company that has existed for 5+ years that hasn't found a profitable business model) which has contributed positively to the acquirer's net income? Is there any chance that this cannot turn out to be a boondoggle, because that seems to be the consensus among the commenters on HN.

YouTube. Possibly Reddit?

Personally I find that in the end, the question should be: can Yahoo! make better use of the $1B elsewhere? If not, the purchase is worth taking the chance.

Re: Tumblr May Reject Yahoo’s $1.1B Acquisition Offer For Being “Too Low”

#39
post #32
post #25

I've been using tumblr as my blog platform for nearly 4 years because it allows easy mobile posting and via emails which makes my posting easy. Yahoo buying tumblr will ruin tumblr for sure like yahoo has done go the past with Flickr and Delicious. Yahoo need to innovate and make things happen rather than buying everything just because they have money. Just imagine what would have happened to Facebook if Yahoo bought…

WordPress supports Post by email: Self-hosted: http://codex.wordpress.org/Post_to_your_blog_using_email WordPress.com: http://en.support.wordpress.com/post-by-email/

thanks for the information. I never knew wordpress emails support adding tags like tumblr up to now. It was really helpful.

The reason I switched from wordpress to tumblr is wordpress started displaying ads on my blog as they do with some blogs at some times. But if yahoo buy tumblr should consider switching to wordpress or blogger or some self hosting platform

Re: Tumblr May Reject Yahoo’s $1.1B Acquisition Offer For Being “Too Low”

#40
post #13

> Tumblr feels that Yahoo’s $1.1 billion offer as “too low” and view it as “only a first offer” And then later in the paragraph: > sources say the company only has a few months of cash runway left. This must be a joke. If you have a few months of cash runway left, $1.1B is more than enough. Seriously. There is no circumstance when this isn't true, unless you have massive non-cash assets on hand. Yes, I'm aware that t…

I don't understand this mentality and you at least are someone I know I can engage with. So, tell me, what makes you believe that you're qualified to determine what Tumblr's worth? "Billion -- with a 'B'"... so what? Tumblr's worth what they're worth. If they're intrinsically worth more than 1.1Bn because of stats we don't really know about or understand, there's nothing unseemly about turning down an offer that undervalues them.

Also: you can't judge what a business is worth solely by their burn rate or cash on hand. You need more information than that. Every year at a company that has a burn rate is an investment year; they could be reinvesting their income for growth, or forgoing that income for same.

(I have no idea what Tumblr is actually worth in 2013, for what it's worth.)

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