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Yahoo sells advertising, Tumblr has users. But a $1Bn valuation is over-inflated in today's market -- Tumblr barely broke even when they started introducing ads

Yahoo sells advertising, Tumblr has users. But a $1Bn valuation is over-inflated in today's market -- Tumblr barely broke even when they started introducing ads last year.

D4M14N 13y ago
Compared, to say, $1b for instagram? (i still dont get that)
- seiji 13y ago
  Instagram was starting to cannibalize the facebook youth userbase. Instagram worked its way into people's minds, vocabulary, and daily habits. The acquisition was a defensive maneuver by the paranoid Kid in Chief.
  - D4M14N 13y ago
    Wouldn't tumblr be the logical next acquisition for Zuck then since it is doing exactly the same.
    - seiji 13y ago
      Well, nobody knew (or knows) how big instagram will get. Tumblr has already peaked. Also, tumblr is too anonymous to be of any value to facebook. Not much to exploit there. I don't think forcing Real Name™ upon every tumblr would make for a happy Internet.
  - graue 13y ago
    > Instagram was starting to cannibalize the facebook youth userbase Tumblr, too, is doing exactly that, if you believe this January survey: http://articles.latimes.com/2013/jan/11/business/la-fi-tn-tumblr-facebook-teens-survey-survata-20130111 http://articles.latimes.com/2013/jan/11/business/la-fi-tn-tu... Another survey, this one from December and including all Americans (not just teens), showed people spend more time on Tumblr than Twitter, Pinterest and LinkedIn combined: http://www.marketingcharts.com/wp/interactive/in-december-americans-spent-more-time-on-tumblr-than-pinterest-twitter-and-linkedin-combined-27046/ http://www.marketingcharts.com/wp/interactive/in-december-am... That seems to suggest Tumblr's worth more than Instagram.
- mugenx86 13y ago
  Photo sharing is said to be core to what Facebook users value. I see Instagram as a defensive acquisition -- they don't want to lose market share to a competitor. It took Instagram only two years to reach 100 million users.

Yahoo sells advertising, Tumblr has users. But a $1Bn valuation is over-inflated in today's market -- Tumblr barely broke even when they started introducing ads last year.

D4M14N 13y ago

Compared, to say, $1b for instagram? (i still dont get that)

seiji 13y ago
Instagram was starting to cannibalize the facebook youth userbase. Instagram worked its way into people's minds, vocabulary, and daily habits. The acquisition was a defensive maneuver by the paranoid Kid in Chief.
- D4M14N 13y ago
  Wouldn't tumblr be the logical next acquisition for Zuck then since it is doing exactly the same.
  - seiji 13y ago
    Well, nobody knew (or knows) how big instagram will get. Tumblr has already peaked. Also, tumblr is too anonymous to be of any value to facebook. Not much to exploit there. I don't think forcing Real Name™ upon every tumblr would make for a happy Internet.
- graue 13y ago
  > Instagram was starting to cannibalize the facebook youth userbase Tumblr, too, is doing exactly that, if you believe this January survey: http://articles.latimes.com/2013/jan/11/business/la-fi-tn-tumblr-facebook-teens-survey-survata-20130111 http://articles.latimes.com/2013/jan/11/business/la-fi-tn-tu... Another survey, this one from December and including all Americans (not just teens), showed people spend more time on Tumblr than Twitter, Pinterest and LinkedIn combined: http://www.marketingcharts.com/wp/interactive/in-december-americans-spent-more-time-on-tumblr-than-pinterest-twitter-and-linkedin-combined-27046/ http://www.marketingcharts.com/wp/interactive/in-december-am... That seems to suggest Tumblr's worth more than Instagram.
mugenx86 13y ago
Photo sharing is said to be core to what Facebook users value. I see Instagram as a defensive acquisition -- they don't want to lose market share to a competitor. It took Instagram only two years to reach 100 million users.