The Yahoo board has approved a deal to pay $1.1 billion in cash for Tumblr
21–30 of 191 posts
Re: The Yahoo board has approved a deal to pay $1.1 billion in cash for Tumblr
#22Thoughts on why this was an all-cash deal as opposed to similar comps (Instagram, YouTube) which were cash/stock mix?
1. Yahoo would rather spend cash than stock (possibly because they anticipate Yahoo stock going up in the future). If Yahoo thinks that $1 in stock today will be worth $2 in 3 years, it might make more sense to spend cash. This is a huge gamble, of course.
2. Cash is intrinsically more valuable than stock; in other words $1 cash != $1 stock. Yahoo may feel more comfortable spending $1 Billion cash than spending $2 Billion stock.
3. The obvious, but maybe too obvious, answer: Tumblr doesn't see a future in Yahoo stock.
Re: The Yahoo board has approved a deal to pay $1.1 billion in cash for Tumblr
#23I'd recommend watching the #yahoo! feed on Tumblr in order to watch the Tumblr community's reaction, and see the inevitable hilarity. (Not providing a link due to high probability of NSFW content. Search for #yahoo! on Tumblr.)
They've started a petition... http://www.ipetitions.com/petition/stop-yahoo-from-buying-tu...
Re: The Yahoo board has approved a deal to pay $1.1 billion in cash for Tumblr
#24I'd recommend watching the #yahoo! feed on Tumblr in order to watch the Tumblr community's reaction, and see the inevitable hilarity. (Not providing a link due to high probability of NSFW content. Search for #yahoo! on Tumblr.)
They've started a petition... http://www.ipetitions.com/petition/stop-yahoo-from-buying-tu...
Re: The Yahoo board has approved a deal to pay $1.1 billion in cash for Tumblr
#25I wonder how this will pan out for Tumblr with Marissa Meyer at the helm. If we look at Flick (bought by yahoo in 2005), it hasn't seen much innovation or new features in the last 8 years and has been mostly coasting. I wonder if this will be the case for Tumblr under Marissa's leadership.
And wasn't one of Marissa's plans when she came aboard to try and revive Flickr, since she saw it as a big asset? Not that it's jumped leaps and bounds since then, but I would think that she'd want to nurture tumblr a bit.
Re: The Yahoo board has approved a deal to pay $1.1 billion in cash for Tumblr
#26I wonder how this will pan out for Tumblr with Marissa Meyer at the helm. If we look at Flick (bought by yahoo in 2005), it hasn't seen much innovation or new features in the last 8 years and has been mostly coasting. I wonder if this will be the case for Tumblr under Marissa's leadership.
Re: The Yahoo board has approved a deal to pay $1.1 billion in cash for Tumblr
#27Thoughts on why this was an all-cash deal as opposed to similar comps (Instagram, YouTube) which were cash/stock mix?
My best guesses: 1. Yahoo would rather spend cash than stock (possibly because they anticipate Yahoo stock going up in the future). If Yahoo thinks that $1 in stock today will be worth $2 in 3 years , it might make more sense to spend cash. This is a huge gamble, of course. 2. Cash is intrinsically more valuable than stock; in other words $1 cash != $1 stock. Yahoo may feel more comfortable spending $1 Billion cash t…
Re: The Yahoo board has approved a deal to pay $1.1 billion in cash for Tumblr
#28Re: The Yahoo board has approved a deal to pay $1.1 billion in cash for Tumblr
#29Earlier quoted context omitted.
They've started a petition... http://www.ipetitions.com/petition/stop-yahoo-from-buying-tu...
Has any internet petition ever worked?
In this case it's just a pointless show of anger by teenagers.
Re: The Yahoo board has approved a deal to pay $1.1 billion in cash for Tumblr
#30I wonder how this will pan out for Tumblr with Marissa Meyer at the helm. If we look at Flick (bought by yahoo in 2005), it hasn't seen much innovation or new features in the last 8 years and has been mostly coasting. I wonder if this will be the case for Tumblr under Marissa's leadership.
"it hasn't seen much innovation" For the existing team at tumblr (say anyone who has stock that is) things like this end up being a buzz kill after it settles in. Working towards something is fun and motivating. Once you get it things simply change (speaking from personal experience and observation here (also as you are pointing out). For example, would you like to get paid now for all the work you are going to do fo…