If you are using Tumblr, you should be aware that it is a unique platform that combines blogging and social media. Did you know that – According to The Wall Street Journal – it is valued at a whopping $800 million! Is it too much?
What is Tumblr, anyway?
“Tumblr is a microblogging platform that allows users to post text, images, videos, links, quotes and audio to their tumblelog, a short-form blog.” – Tumblr wiki, Wikipedia
Tumblr has 45 employees, and barely making money from the 13 million US users (as of July 2011) and has 27 million blogs. The money is largely coming from custom themes marketplace.
How can Tumblr worth $800 million?
Beats me. That’s the wonder of online business, right? Facebook, Foursquare, etc. are big social sites, but they are also not making so much money considering their value.
It seems that investors are investing in the future, seeing users and blog counts as asset. With 27 million blogs, each tumblelog is valued at $30. Now that’s how it makes sense! (or not?)
What do you think? Is Tumblr’s $800 million price tag too much? Is it making good sense? Please share your opinion!