Description: Yahoo announced that it is acquiring Tumblr—a blogging network site—in a $1.1 billion deal. The deal amount seems too large to be recovered through advertisement revenues.
Source: CBC
Date: May 21 2013
Video link: http://www.cbc.ca/player/News/Business/ID/2386687850/
Questions for Discussion:
- Will Yahoo be able to recover the $1.1 billion it is spending to acquire Tumblr?
- Is this a financially viable deal?
- What are some of the strategic reasons for Yahoo to acquire Tumblr?
- What are some of the synergies that Tumblr will bring to Yahoo?
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