Monday, May 20, 2013

Yahoo copying Facebook by buying Tumblr?

You know how Facebook bought Instagram to increase it's mobile users and picture viewing. Now Yahoo has followed, Facebook and is going to buy tumblr for $1.1 Billion and it will be operated separately. Yahoo made the statement, "Per the agreement and our promise not to screw it up, Tumblr will be independently operated as a separate business".





Marissa Mayer the Chief Executive at Yahoo decided to spend about 1/5th of their fortune (5.4 billion) on tumblr to attract the young readership and it could be a big gamble as told by analysts that it is too big of an investment from the side of Yahoo. But you have to take risks, considering how Yahoo remained a good investment than Facebook in the previous quarter we hop yahoo performs better this time too with their log term investment in tumblr.

Source: Redorbit.com

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