So $YHOO buys Tumblr.
Wow. Mazel Tov to the investors.
Not that you are counting, but I am…that makes three $1 billion companies in 2007 and 2008 I passed on as an angel…$ZNGA, Twitter and now Tumblr. Actually I asked David after this interview if I could invest $50,000 in his angel round and he quickly said no:
I just ran into David by chance in San Francisco and we had a nice chat. I assumed he was there for the Google IO conference. I should have just asked him for a loan.
My quick thoughts because I have been asked are that this is a great deal for $YHOO and obviously a fantastic deal for Tumblr. Yahoo gets UGC (User Generated Content) up the ying yang from this acquisition and an easy to use platform that teens freaking love. It is also the one UGC Company that does not break the bank for Yahoo. Tumblr gets the inflated cash price for being the right product at the right place at the right time.
Another huge winner is Frank Quattrone. Like all great American bankers, he has been prosecuted but never convicted.
Maybe not a coincidence that Tumblr is said to have a lot of porn on their site and Quattrone has a ‘porn’ moustache…