Yahoo Buys Tumblr: Instagram Or Flickr?
by Valuentum
Former web titan Yahoo! (YHOO) made headlines after announcing it acquired social media/blog site Tumblr for $1.1 billion, mostly in cash. Even though Tumblr generates little revenue, Facebook (FB) did acquire Instagram for $1 billion (in cash/stock at the time) when the company didn't post any revenue. Given the amount of venture capital readily flowing into Internet media companies, a valuation that seems ridiculous in any other industry has simply become the going rate in tech (right or wrong). read more »
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