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Negotiating table: Will Yahoo part with $50 million to buy Tumblr?

Published by on Feb 13th, 2009, 1 Comment

It was not very long ago that the young owner of Tumblr, David Karp, said that they were going to try and buy Yahoo. But apart from the little gest, it is now being rumored that Yahoo indeed is considering the possibility of buying the start up that is rapidly ascending the popularity charts.

tumblr

While shelling out a sum in the order of $50 million to bring in Tumblr under its umbrella – a cheap bargain for Yahoo compared to what it might have to shell out for a site like Twitter – the deal for now seems to be more of a rumor than a reality.

For starters, David Karp and his employees do not seem to be really happy with selling out their little “gemstone” just yet. One reason could be the fact that they managed to raise $4.5 million in December, an investment which reportedly valued the company at $15 million. Other than that, on Yahoo’s side things do not seem too bubbly with their woefully bad management when it comes to acquisitions.

So in other words, if it’s not making money immediately, it is unlikely Yahoo’s already hit pockets can afford to throw away another $50 million to the wind. We’ll have to see whether it sticks or not. What do you think?

[via ValleyWag]

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Comments

  • Mirage Las Vegas

    I agree, this is a bargain, but also is showing the estate of the startups now. In 1998 this will cost more than 1 billion.

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