The grand lucrative offer by the CEO of Yahoo to Tumblr at a value of $1 billion might reject the offer. Tumblr feels the value to be too low and is also said to be the first offer for the company. It is perceived that the only ways of closing the deal is to pay more by Yahoo. Yahoo has to offer more; it is expected only then too cracks the “giant deal”. There is something more in the cards of Tumblr and that is acquisition by a giant tech. However news say something more –“the cash runaway is left only for a few months”
The proud site AllThingsD came up with the news that Yahoo is expected to crack the deal with $1.1 billion cash by Yahoo to purchase Tumblr. It has also been said that the deal is expected to come up on Sunday night when the directors are supposed to have a meet up. It is not only Yahoo that is interest in buying Tumblr. Fobes came up with a report that Microsioft and Facebook are also in the acquisition of Tumblr. It will not be easy for the blogging platform to hold the bidding war with the deal because Yahoo is supposed to have lock-up agreements with Tumblr.
This puts Yahoo all the more in the upfront. It is likely to get a “NO” from Tumblr for the deal if Yahoo comes up with an insufficient offer. The expected valuation of $1.1 billion might be less for Tumblr. Surprising for the readers, Tumblr was the first to take the initiative for this big deal. It was announced by the social media a few months back that it is interested in being acquired and so Yahoo was the first one to come up with the offer.
News have been uncertain and fluctuating since then because some of the sources reveal the apprehensiveness of the deal by Tumblr with $1.1 billion. Tumblr employees have received some threatening news and that is the scarcity in the funds. Tumblr is too low in funds that can operate for a few more months only.