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The Yahoo board has approved a deal to pay $1.1 billion in cash for Tumblr

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Re: The Yahoo board has approved a deal to pay $1.1 billion in cash for Tumblr

#22

Thoughts 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 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

#23

I'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...

Has any internet petition ever worked?

Re: The Yahoo board has approved a deal to pay $1.1 billion in cash for Tumblr

#24

I'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...

Already at 150k. Looks like Yahoo made a good purchase!

Re: The Yahoo board has approved a deal to pay $1.1 billion in cash for Tumblr

#25

I 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.

According to the verge there is a flickr redesign coming up soon: (check update2: http://www.theverge.com/2013/5/17/4341144/yahoo-to-hold-mond...)

Re: The Yahoo board has approved a deal to pay $1.1 billion in cash for Tumblr

#26

I 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.

I share your reservations, but has Tumblr really been going anywhere the last couple of years? It's a little like Flickr in how it's calcified in development, but is still a solid product, nevertheless, albeit one that feels a bit stale.

Re: The Yahoo board has approved a deal to pay $1.1 billion in cash for Tumblr

#27

Thoughts 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…

[deleted]

Re: The Yahoo board has approved a deal to pay $1.1 billion in cash for Tumblr

#28

Earlier quoted context omitted.

They've started a petition... http://www.ipetitions.com/petition/stop-yahoo-from-buying-tu...

Already at 150k. Looks like Yahoo made a good purchase!

I love the extra comma on that petition site.

    ,149,476

Re: The Yahoo board has approved a deal to pay $1.1 billion in cash for Tumblr

#29
post #23

Earlier quoted context omitted.

They've started a petition... http://www.ipetitions.com/petition/stop-yahoo-from-buying-tu...

Has any internet petition ever worked?

For issues where a public petition might matter, yes. Usually they serve as social proof to press lawmakers and other public figures to deal with something. Quantifying popular opinions/demands is a powerful tool.

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

#30
post #20

I 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…

You write "twitter" where you mean "tumblr".
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