
The blockbuster acquisition of Tumblr by Yahoo for $1.1 billion — all cash — has been portrayed as a gigantic gamble on the part of the acquirer. However, for those of us who believe there can be specific guidelines around the valuation of interest graphs, it looks more like it might turn into a game-changing steal. Let’s look at some of the factors which might lead a big company to value Tumblr more highly than Instagram. The more specific the interest, the more valuable. After reading my recent thoughts about why Tumblr is so valuable, Josh Elman of Greylock Partners made a most astute observation: Everyone’s Facebook feed is … [Read more...]






















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