The Yahoo!-Tumblr Deal Looks Too Cheap

The carping on Wall Street on Monday was that Yahoo! (YHOO) is overpaying in its acquisition of Tumblr. The purchase price for the blogging and social-media site, which was started in 2007 by David Karp, who is an ancient 26 now, is $1.1 billion in cash. Tumblr, among the 20 most visited websites in the U.S., hosts about 100 million blogs and projects $100 million in revenue for 2013.

Frankly, I've got trouble with the math too. But not because Yahoo! is overpaying. I think it is yet another negative indicator for the Internet sector as a whole that the price is so low....405 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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