Yahoo! Inc. (YHOO), Facebook Inc (FB), Google Inc (GOOG): Tumblr’s Acquisition Is an Expensive Deal

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Summary

Yahoo!’s share price has increased more than 80% in the past 12 months. However, revenue basically remains flat. To keep up with high expectations, Yahoo! needs to get artificial growth from acquisitions. However, the recent acquisition of Tumblr may not add significant revenue. Finally, we should remember that Google and Facebook are hard to beat competitors because their products are very unique. Yahoo! owns many services but nothing “very unique” so far. Acquiring early stars can help to partially solve this issue.

Adrian Campos has no position in any stocks mentioned. The Motley Fool recommends Facebook and Google. The Motley Fool owns shares of Facebook and Google.

The article Tumblr’s Acquisition Is an Expensive Deal originally appeared on Fool.com and is written by Adrian Campos.

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