Is Tumblr really worth US $1.1-Billion ??

[domainguy]

There was an article I saw the other day about Yahoo taking over Tumblr for a pretty sum of US $1.1-Billion. For full view check the link below if you did not get a chance to read it...

http://business.financialpost.com/2013/05/20/tumblr-yahoo-david-karp/?__lsa=225e-3804

What are your thoughts folks? Love to hear!!

Cheers,
Tom

 

[James]

Well Tumblr has 110ish million users in the teen bracket 18-30 which Yahoo is keen to tap into.

I can see them pushing advertising both mobile and desktop heavily.

the only down side is Tumblr has heaps of Porn on it so I am curious to how Yahoo will tackle that area for its share holders.

Personally I am not sure it is worth 1.1 billion possibly less but in the end of the day I am sure they can see revenue streams coming from it.

 

[payattention]

18-30 is a teen bracket? I wonder how many of their users are under 18.

As for porn, Yahoo said they will leave it alone but once advertisers and brands get involved, maybe they will remove or wall it off.

I think the price is excessive as these types of sites seem to only live a few years before becoming obscure. When I was 18, livejournal was the hip thing, I doubt anyone that age today uses LJ.

 

[domainguy]

Yeah, I could not agree more and thanks for the input James.

you were right about the "porn" active users, but who knows Yahoo may came up a strategy which tackles that and even works better for them.

Potential is just a potential right, the possibility is the possibility, and is still very uncertain who knows what the future holds it's kind of gamble to me. The offer is way too much considering capital investment to a new venture or business. But well, they got the cash it's only a 1/5 of their cash in hand anyway that is US$5.4-billion coming from 50% stack sale from Allibaba.

Cheers,
Tom

 

[James]

Yeah, I could not agree more and thanks for the input James.

you were right about the "porn" active users, but who knows Yahoo may came up a strategy which tackles that and even works better for them.

Potential is just a potential right, the possibility is the possibility, and is still very uncertain who knows what the future holds it's kind of gamble to me. The offer is way too much considering capital investment to a new venture or business. But well, they got the cash it's only a 1/5 of their cash in hand anyway that is US$5.4-billion coming from 50% stack sale from Allibaba.

Cheers,
Tom

Selling off the stock in Allibaba was and interesting move as china is really set too blow up in the near future so selling off Allibaba for Tumblr is an interesting move.

In an essence it is similar to the Instagram acquisition which targets sheer mass and the possibility of making money.

But hey it is a risky move with may or may not pay, but for a company like Yahoo to gain traction it is risk they need to take.

 

[Blue Wren]

Selling off the stock in Allibaba was and interesting move as china is really set too blow up in the near future so selling off Allibaba for Tumblr is an interesting move.

China set to blow up? What do you mean James?
Thank you.

 

[James]

China set to blow up? What do you mean James?
Thank you.

By blow up I mean blow up in terms of Growth, for example they have 520 million ecommerce shoppers online and around 1.2 billion internet users in the region.

 

[domainguy]

By blow up I mean blow up in terms of Growth, for example they have 520 million ecommerce shoppers online and around 1.2 billion internet users in the region.

Don't know selling off their stake at Alibaba is good move or not time will tell. Apparently they neither did not make profit at Alibaba nor the profit was not that substantial for them to stay otherwise and that can be easily understood right!

I don't really know what you meant by "blow up" you must have got some facts upon that... I believe? China has recently declined with its economy as a whole being heard from the news but nothing has caused a great impact to their economy just yet.

For curiosity sake, do you happen to know who/corp is taking over from their share/stake James??

Cheers,
Tom

 

[James]

Don't know selling off their stake at Alibaba is good move or not time will tell. Apparently they neither did not make profit at Alibaba nor the profit was not that substantial for them to stay otherwise and that can be easily understood right!

I don't really know what you meant by "blow up" you must have got some facts upon that... I believe? China has recently declined with its economy as a whole being heard from the news but nothing has caused a great impact to their economy just yet.

For curiosity sake, do you happen to know who/corp is taking over from their share/stake James??

Cheers,
Tom

Alibaba purchased back the stock from Yahho direct, so they can clearly see it was going to be worth it.

I have been seeing some research on China/Asia in the next 3-5 years it is looking healthy for growth.

Check out mobile connections by 2015:
http://jamesnorquay.com/wp-content/uploads/2013/05/Exact-target-stats-mobile-asia-300x157.jpg
Also check out the number of people comming out ofpoverty every week in the region:
http://jamesnorquay.com/wp-content/uploads/2013/05/Exact-target-stats-on-asia-300x150.jpg

 

[domainguy]

Good on you.

Cheers,
Tom