Earlier quoted context omitted.
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There are people who use "they" as singular gender-neutral 3rd person pronoun.
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The $3B+ Exit Tumblr Could Have Had
41–50 of 77 posts
Re: The $3B+ Exit Tumblr Could Have Had
#42The only reason Yahoo made an offer is because they were afraid someone else might. Otherwise they'd be content to wait for the layoffs to begin before giving an opening bid of $150 million.
Tumblr seems to have followed the SV model in all respects but one. Raise a lot of money, get a lot of users, and staff up way beyond your needs (175 employees)? Check. They missed the last one, though: don't bother to monetize so you don't run the risk of doing it badly and lowering your evaluation.
The urgency to get a billion dollar offer on the table as the wheels fall off of the bus is so utterly ridiculous and symptomatic of the problem with SV culture.
Re: The $3B+ Exit Tumblr Could Have Had
#43"According to Forbes Tumblr is targeting $100M revenue in 2013 but, according to sources I spoke to who are familiar with the company, actual Q1 revenue growth was flat and Tumblr is on track to do only $15M in revenue this year." This is unbelievable. I can't believe they're running out of the $85M so soon after raising it, and have basically nothing to show for it. I'd be pretty outraged if I were an investor.
How can a company making 15 million in revenue alone be worth a billion? I wonder what the profits look like...
I also wonder what those 175 employees are actually doing?
Re: The $3B+ Exit Tumblr Could Have Had
#44Earlier quoted context omitted.
We should probably avoid using Instagram in examples. It's such an insane outlier that it doesn't make sense to compare anything to it.
Tumblr is very similar to Instagram and should be considered as example. The overlap between Instagram and Tumblr users in the early days is huge. Both are targeted at young crowd with similar taste graph. As a Platform Tumblr has great potential in spreading the content. Reblogs works just like retweet and a good content can potentially go viral. That also includes rebloging of promotional content. I personally feel…
I think Instagram acquisition and this are not similar cases. Instagram was a direct competitor of a core product of Facebook: Photo Sharing while there's no such competition in Tumblr case.
Re: The $3B+ Exit Tumblr Could Have Had
#45I think combining Flickr and Tumblr could be a massive win for Yahoo! They have monetised Flickr successfully and the model they use to do that combined with Tumblr's current model could see them transform revenues on both titles very quickly. I do think Tumblr should grab the offer while it's on the table, however.
Re: The $3B+ Exit Tumblr Could Have Had
#46There are a two major faults with the author's analysis which lead me to believe this post should not be relied on. 1. Advertising rates are far below the author's $10-20 CPM estimate for dashboard advertising; $10-20 is for legitimately premium advertising such as high-end audiences, wrapping a website, etc. Dashboard / banner ads will fetch $0.5-3 CPM the way Tumblr is running them. 2. The "valuation" formula of 10…
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Re: The $3B+ Exit Tumblr Could Have Had
#47I think combining Flickr and Tumblr could be a massive win for Yahoo! They have monetised Flickr successfully and the model they use to do that combined with Tumblr's current model could see them transform revenues on both titles very quickly. I do think Tumblr should grab the offer while it's on the table, however.
Quick question: how did Yahoo monetize Flickr?
Re: The $3B+ Exit Tumblr Could Have Had
#48> In the end Tumblr won’t see a bigger exit because they didn’t prove they could monetize their massive traffic before time (and money) ran out. Instagram had $0 in revenue when they were acquired for $1 billion in cash/stock. The price paid in that instance was for potential , and it's likely to be the same in the case of Tumblr.
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Re: The $3B+ Exit Tumblr Could Have Had
#49I think combining Flickr and Tumblr could be a massive win for Yahoo! They have monetised Flickr successfully and the model they use to do that combined with Tumblr's current model could see them transform revenues on both titles very quickly. I do think Tumblr should grab the offer while it's on the table, however.
Quick question: how did Yahoo monetize Flickr?
Quick answer: Freemium +
Re: The $3B+ Exit Tumblr Could Have Had
#50> In the end Tumblr won’t see a bigger exit because they didn’t prove they could monetize their massive traffic before time (and money) ran out. Instagram had $0 in revenue when they were acquired for $1 billion in cash/stock. The price paid in that instance was for potential , and it's likely to be the same in the case of Tumblr.
I don't remember where I heard this, but it was something along the lines "it's better to have $0 revenue, than to have $100 revenue (or some other low number you want to use)". Because at $0, you could sell the company on potential, while at $100 you're making it seem like a very poor business.
If Tumblr wasn't making any money at all, maybe they could've sold it for $3 billion, but since they already have a monetization plan in place, and aren't making that much money with it, the expectations for monetization are a lot lower now, and the company is worth less.