Yahoo Is Buying Tumblr for a Billion Dollars
According to multiple reports, Yahoo will buy social blogging platform Tumblr for $1.1 billion in cash. As CNBC points out, Yahoo has a reputation for making high-dollar acquisitions ($35 million for Flickr, $3.6 billion for GeoCities, $5.7 billion for Broadcast.com) and then allowing the sites to fade from prominence. Even though Tumblr, which is owned by its 26-year-old founder David Karp, has a large user-base, it still isn’t a very profitable enterprise and has struggled to make much money from advertising. Many tech analysts and those familiar with the platform see the move as a major gamble for Yahoo: Best-case scenario, Yahoo improves on a simple, clean, blogging experience; worst-case scenario, they just paid a billion dollars for a lot of funny cat GIFs …
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