Will Yahoo's bet pay off?

In this edition of Investor Beat: Yahoo spends $1.1 billion for Tumblr. Will the blogging service pay dividends for shareholders?

By Motley Fool Investor Beat May 20, 2013 4:53PM
Yahoo! (YHOO) CEO Marissa Mayer announced the company has bought Tumblr for $1.1 billion.  It’s her boldest move yet since joining Yahoo last summer.

Even though she promised “not to screw it up,” the Tumblr acquisition has some observers wondering if Yahoo paid too much.  In our lead story, Motley Fool analysts Andy Cross and Jason Moser discuss the pros and cons of the deal -- and whether it will pay off for investors.
Credit: © Robert Galbraith/Reuters
Caption: Yahoo logo is shown at the company's headquarters in Sunnyvale, CaliforniaAlso making news during Monday’s market action, and covered in Investor Beat: 
  • American Express (AXP) hits a new all-time high.
  • Campbell Soup (CPB) falls despite strong 3rd-quarter profits and raising guidance.
  • Barnes & Noble (BKS) moves higher after announcing an upgrade to the Nook tablet.
  • Raven Industries (RAVN) shares are down after 1st-quarter profits fall 26%.
And we close Monday’s episode with two stocks to watch.  Andy’s got Home Depot (HD) on his radar.  Jason, meanwhile, is watching Best Buy (BBY).

The Motley Fool’s 12 top stocks for 2013 are now available! So if you’re tired of picking stocks out of a hat and hoping that one skyrockets, check out Stocks 2013: The Investor’s Guide to the Year Ahead. It’s The Motley Fool’s current top report, and includes Chief Investment Officer Andy Cross’s top stock for 2013! This under-the-radar company is the secret winner in the war for the last precious drops of oil on the planet. Find out what it is and how you can take advantage of this unseen company’s huge profits in this special, free report, just click here now.

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5Comments
May 20, 2013 9:13PM
avatar
Yahoo is buying Tumblr STRICTLY because it's primary users are under 30 and a fair amount under 21. The purpose of the purchase is-- to bombard it with advertising and marketing aiming for the naïve, innocent and/or ignorant. It's using business platforms like weapons and deploying them for profit instead of operating them like businesses.
May 20, 2013 9:09PM
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It depends what Yahoo! does with the site. Tumblr is a wonderful website. Once most people sign up, they stay. But there's one problem:

 

Tumblr users hate Yahoo!

 

To Tumblr users, Tumblr is a home. It's a place where nearly everyone is friendly and welcoming. But if Yahoo changes one thing in the wrong direction.. Just one thing.. Then every Tumblr user will delete their blog. It's that simple. Tumblr is going crazy right now since they DIDN'T want Yahoo to by their beloved website.

 

I do believe, however, that this buy was overpriced. As much as I love Tumblr, which is like home to me, it was sold for too much. Simply because you can't avoid the 'big three' television series. Supernatural, Dr. Who, and Sherlock are big fandoms that you can't avoid on Tumblr. They're everywhere. Hipsters or/and fandom/band blogs are the main ones that survive. If you don't have those intrests, then you don't belong to Tumblr.

 

Also, everyone on Tumblr is nearly the same. No, they don't look the same or come from the same homes. Instead they have the same snarky, sarcastic humor. Once a part of Tumblr, you become a recluse.

 

Many find it ironic that, a few months ago, Yahoo posted an article that states that all the users are porn adicts.

May 20, 2013 10:27PM
avatar

Who really gives a pigshidt....??

 

Holy shidt I read one of the comments...You  might be a sick mfkr...chek for meds...good luck,

edited for this last sentence...

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