Monday, May 20, 2013

Yahoo buying Tumblr for $1.1 billion.

Billion dollar deal makes 26-year-old America's next tech tycoon: High school drop-out behind blogging site Tumblr sells it to Marissa Mayer's Yahoo! 

Yahoo Inc. has agreed to pay $1.1 billion for Tumblr, a six-year-old company with more than 100 million users but very little revenue, a deal that highlights the shifting balance of power in the technology business. According to Micheal Wolff,  Yahoo buying Tumblr is not a turnaround story Yahoo is still sinking. The Tumblr purchase is an effort to salvage what value is left for activist investor Dan Loeb.

CEO Tumblr David Karp and CEO Yahoo Marissa Mayer
Yahoo is struggling and has changed her CEO five times since 2011. BuzzCanada do believe that the deal is not a value-added acquisition at least in the short term since Tumblr do not have a revolutionary presence in the social media industry. Lets not doubt the agenda of Yahoo Inc. They have been in the business long enough to know whatz up 

No comments:

Post a Comment