I had heard the "well below 20m" figure and couldn't believe it—and now Fred is saying they dumped it for $3 million? I suppose if Verizon is taking the tax deduction on an original $1.1 billion purchase by Yahoo, the value of the deduction so much dwarfs the sale price that the difference to Yahoo between a $3 million sale price and a $50 million sale price is pretty minimal—they just want to close the deal to take the deduction and stop the losses.
Still, considering the fact that Tumblr still does over 2.5 billion page views per month [1], not even counting their mobile usage, I can't help but gawk at what a steal Automattic got. Really drives home what their CEO Matt Mullenweg said on here the other day about adopting a "Berkshire model"—although he was referring to independent management, what he's really talking about is buying companies grossly undervalued for dirt-cheap. Just monetizing the web traffic 2.5 billions monthly hits at a $1 CPM alone would generate $2.5 million a month in revenue, $30 million annually.
What kind of business, let alone web business, sells for 1/10th annual revenue? For reference, Reddit does 6x the page views, but is valued at $3 billion. Reddit's prospects are obviously better, but are they 1000/6 = 166x times better per current page view? Mind-boggling.
[1] https://www.similarweb.com/website/tumblr.com
Still, considering the fact that Tumblr still does over 2.5 billion page views per month [1], not even counting their mobile usage, I can't help but gawk at what a steal Automattic got. Really drives home what their CEO Matt Mullenweg said on here the other day about adopting a "Berkshire model"—although he was referring to independent management, what he's really talking about is buying companies grossly undervalued for dirt-cheap. Just monetizing the web traffic 2.5 billions monthly hits at a $1 CPM alone would generate $2.5 million a month in revenue, $30 million annually.
What kind of business, let alone web business, sells for 1/10th annual revenue? For reference, Reddit does 6x the page views, but is valued at $3 billion. Reddit's prospects are obviously better, but are they 1000/6 = 166x times better per current page view? Mind-boggling.
[1] https://www.similarweb.com/website/tumblr.com