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One bad sign for Yahoo’s Tumblr buy: Its history of $1 billion duds

Yahoo Tumblr Merger Analysis

Yahoo turned some heads this week when it announced that it was paying $1.1 billion to buy blogging platform Tumblr, but this isn’t the first time it has spent at least $1 billion to acquire another company. As NPR points out, Yahoo has bought several companies over the past 15 years that it has valued at $1 billion or higher, including most famously its $3.7 billion acquisition of GeoCities in 1999. Other failed Yahoo acquisitions include the $5.7 billion it paid for multimedia website and the $1.63 billion it paid for search advertising pioneer Overture. In fact, all of these acquisitions make the $30 million that Yahoo paid for Flickr back in 2005 seem like a relative success story, since Flickr is still an operational service that the company is still pouring resources into. That said, when Flickr is seen as the best-case scenario for a Yahoo acquisition, it’s easy to see why Tumblr users are nervous.

Prior to joining BGR as News Editor, Brad Reed spent five years covering the wireless industry for Network World. His first smartphone was a BlackBerry but he has since become a loyal Android user.