> The acquisition price is artificially being inflated by investors who are trying to squeeze Yahoo, who is trying to "turnaround" its profitable business. The $1.1.bn price is already "too high" for Tumblr's true underlying value.
That's the market. If Yahoo thinks tumblr is worth $1.1B, then Yahoo will pay $1.1B; if not, then they won't. How the price got there (by some artificial inflation or whatever) is irrelevant.
> Yahoo has no track-record of successfully acquiring, integrating and generating value from such acquisitions. Broadcast.com ($5.7bn), GeoCities ($3.6bn), Inktomi ($235m), Overture ($1.6bn), del.icio.us ($20m), Flickr ($?m), and the list goes on.
All the acquisitions cited are 8+ years old. And it is hard to say whether the recent acquisitions (within the past, say, 5 years) are doing well or not.
(I would also vote against the acquisition, but for other reasons)
Comments
> The acquisition price is artificially being inflated by investors who are trying to squeeze Yahoo, who is trying to "turnaround" its profitable business. The $1.1.bn price is already "too high" for Tumblr's true underlying value.
That's the market. If Yahoo thinks tumblr is worth $1.1B, then Yahoo will pay $1.1B; if not, then they won't. How the price got there (by some artificial inflation or whatever) is irrelevant.
> Yahoo has no track-record of successfully acquiring, integrating and generating value from such acquisitions. Broadcast.com ($5.7bn), GeoCities ($3.6bn), Inktomi ($235m), Overture ($1.6bn), del.icio.us ($20m), Flickr ($?m), and the list goes on.
All the acquisitions cited are 8+ years old. And it is hard to say whether the recent acquisitions (within the past, say, 5 years) are doing well or not.
(I would also vote against the acquisition, but for other reasons)