The bottom line
These two acquisitions are vastly different. While some are pointing to Facebook’s success with Instagram as a reason to believe Yahoo!’s Tumblr acquisition will be a success, they’re relying on faulty logic. The two businesses had very different motives and very different plans for what to do with their newly acquired businesses.
Zuckerberg spent a billion on a company, and while he was mocked by many, Wall Street isn’t looking for them to make money on it any time soon. The opposite seems to be true with the Tumblr acquisition. It’s hard to imagine Wall Street letting Yahoo! get away without making a few bucks off its latest acquisition.
The article The Difference Between Instagram and Tumblr originally appeared on Fool.com and is written by Adam Levy.
Adam is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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