AlleyShowdown – Yahoo versus Tumblr


Yahoo’s acquisition of Tumblr, valued at $1.1 billion, represents the largest venture backed acquisition in New York in history.  This exit will have significant ramifications for the ecosystem in New York for years to come.   The consensus is that Tumblr founder David Karp received a good deal considering the company was burning through the $125 million in funding it had raised to date.  Tumblr reportedly earned $13 million in revenue in last quarter despite projecting to earn $100 million annually. For Yahoo, the sentiments are mixed.  So what made Yahoo pay 20x annualized earnings for Tumblr.  Perhaps this week’s showdown makes it clear.


yahoo versus tumblr

So what will happen?  Sound off in the comments below…

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