5 Things Yahoo! Inc. (YHOO) Investors Need To Pay Attention To

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5. Mergers and Acquisitions

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When Yahoo purchased 17 startups, many began to wonder if there really is a strategy being employed here. The most widely discussed acquisition by Yahoo was that of Tumblr, a blogging service, which will be providing one billion users to Yahoo and not to mention a lot of traffic. This will not only help in generating ad revenues but will also, as Yahoo hopes, provide a social media that Yahoo has been missing.

However, by overpaying for a company that has only generated $13 million in revenue in 2012, Yahoo expects to generate revenue by placing advertisements in different blogs that Tumblr operates.

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