Yahoo! Tumblr

Venture Beat: “While Tumblr is popular, it only made $13 million in revenue last year, when it first started selling ads, and hopes to grow that to $100 million in revenue this year.”

Wow. On Friday afternoon the acquisition point for Tumblr had gone to $1.1 billion. Mind boggling considering they had revenue of $13 million last year.

I like Tumblr. If this acquisition happens I hope it’s good for Yahoo! and good for Tumblr. I think the first thing they do is start using Flickr for photo sharing on Tumblr then do something to bring the two closer together. Seems like a nice fit considering the popularity of photo sharing on Facebook and Instagram.

I read a comment somewhere, sorry I don’t remember where, to the effect that all Marissa Mayer is doing is buying other companies and anyone could’ve done that. That’s true, but anyone didn’t do that, Ms. Mayer is. I think it’s pretty brilliant, and unlike Twitter’s acquisition of Posterous, which was all about engineering talent, this one seems like it could be a nice fit and an opportunity to do something incredible with two products; Flickr and Tumblr.

UPDATE: Interesting piece on Hacker News. Apparently $1.1 billion may be too low? That would be the VC’s talking if there’s any truth to it. Take the money and run, while you still can.

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