Yahoo buys tumblr

http://mattgarner.net/uploads/2013-05-19_19-02-33.png

Quote:

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According to The Wall Street Journal, Yahoo's board of directors has approved the company's widely-rumored acquisition of Tumblr in an all-cash deal worth $1.1 billion. Assuming the terms are accepted by Tumblr, CEO Marissa Mayer is all but certain to announce Yahoo's latest pickup — easily its largest to date in a spree of acquisitions and content deals — at a media event tomorrow in New York City. Reports of the approval follow days of rampant speculation, with AllThingsD first reporting that Yahoo's board planned to meet today to reach a final decision.

The high-dollar buyout is seen as favorable for both sides, bringing Yahoo a massive community of the younger users it's desperately sought in recent years while offering Tumblr's investors a significant payday.

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Source: http://www.theverge.com/2013/5/19/43...lr-acquisition


Thoughts on Yahoo doing this? Think it's the right move for both sides or wish Yahoo never even looked into buying Tumblr?

Forgive me if this is meant to be posted elsewhere but it'd suit here:

Quote:

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David Karp, the 26-year-old founder of blogging site Tumblr, has just made to make a lot of money - almost in spite of himself.

Yahoo's board of directors agreed on Sunday to buy his wildly popular blogging platform, which boasts 100million users and 90million posts per day, for $1.1billion cash.

The deal could make the native New Yorker the latest 20-something tech billionaire, even though he was publicly opposed, even just last year, to selling the company he founded out of his mother's small Manhattan apartment in 2007.

On Sunday afternoon, it was revealed Yahoo's boardapproved the purchase of Tumblr, despite its revenue of only $13million last year. Even that figure was only made possible after $125million in capital investments.

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Interesting they paid so much for it. Tumblr users have reacted fairly negative to this based on the posts on my dashboard :P

It doesn't make any money and even when it does, people will stop using it because of adverts and Yahoo's integration. I didn't realise Yahoo were cash rich anyway, last thing I read they wasn't doing so well.

Very upset by this in all honesty, just hopefully they don't ruin it and the plastering with adverts wony be too horrendous :( not hopeful though lmao

Tumblr was terrible to begin with so not much change I guess. Yahoo probably wanted all the userdata for advertising reasons.

Yahoo will make more money from it though

yeah, the only thing that worries me is tumblr users are probably going to be plagued with advertisements now. i remember it was always boasted about having no ads :(

I will be very disappointed if they overload it with ads too, it's great without them.

Oh but adblock wins.

Well Tumblr is about to go down the pot hole...

I use it but not much anymore so I doubt I will care about ads anyways. :)