Go ahead. Let Yahoo!, inc. waste over a billion on Tumblr.
and watch as both it’s user populace, and market value plummet overnight.
Just like with Facebook, this site is not what the Projected market value says it’s truly worth. In fact, it’s more than likely worth a hell of a lot less. The current projected value of David Karp and Tumblr both, is $800,000,000 (Eight Hundred Million) US. But keep in mind what went wrong with Facebook: projected value never translates to actual market value.
Not that long ago, Wall Street and Finance media giants were predicting that Facebook was worth $100,000,000 (One Hundred Million) US, when in fact, moments after the IPO closed, everyone shit themselves in panic at the realization that Facebook in fact, is fucking worthless at a mere $12 a share. Zuckerberg has quite literally had to sell ad space on both his site, and even gone so far as to create a Facebook phone, just to pay back his investors every last dime he lost. He’s still not seeing a return on any other investments like Facebook Home and won’t until sometime in 2015, because he had no business model to support the claims of Facebook’s insane value.
David Karp faces this same issue. What has he done other than take what Google were already doing quite successfully with Blogger, and given it a facelift and a few new Web 2.0 design features? Nothing really. Now people are claiming that he and his colossus of a social network Tumblr, a largely community driven website is projected to be worth upwards of 800 Million, only to turn around and (allegedly) tell Yahoo! that the offer of 1.1 Billion is too little? Are you serious with that David?
Apparently, no one in the world of Modern business really pays that much attention to history. But sure, let’s go ahead and let Yahoo! blow over 1 billion dollars, because really, everyone will simply jump ship to somewhere else like 4Chan, or go straight back into the arms of either Facebook, or Blogger.
Personally, I say fuck it. Let’s all go back to MySpace!