It’s no news that Yahoo is buying Tumblr for $1.1billion even though Tumblr generated just $13million in income last year and projects $100million in 2013. The valuation as it stands is higher than the combined market value of Oando (N35.2billion or N220million) , Forte Oil (N15.3billion or $95.6million, Okomu Oil (N51.4billion $321million)and the Entire ICT Sector (N62.6billion or $391million) as at May 20, 2013.
American Investors use several unorthodox metrics in valuing tech companies which is why conservatives like Warren Buffet hardly touch such stocks. For Yahoo buying Tumblr simply gives them an access to millions of people and an extra advertising outlet for the main business. Even at the projected $100million in projected revenue Tumblr is still just $37million more than the $63million Okomu Oil made last year. Would you rather own Tumblr or Oando??
