May 20, 2013 0 Comments
Yahoo Wants to be Cool
Yahoo wants to be cool, plain and simple. It’s why they’re proposing to purchase micro blogging site Tumblr for $1 billion. The ever-aging tech company has a $3 billion war chest from their supremacy in the 90s, and it seems they’ve allocated a significant portion of that to buying companies engaging 24 to 35-year-olds.
Tumblr, with its hipster community, cat GIFs, memes, and amateur porn is one of those special companies that has managed to attract a 10-figure valuation despite no indication of current profitability. Is anyone else having flashbacks to Facebook’s purchase of Instagram? It’s a healthy reminder to all of us that strategic acquisitions are alive and well.
Tumblr users are making a lot of noise in protest of the proposed acquisition. Links in Tumblr tagged “yahoo”, show threats of a mass exodus of users if the deal goes through. Remember Yahoo, you can’t buy cool (even if you can buy a path to further profitability).
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