Tumblr is Valued at $800 Million: Too Much?

tumblr valuation

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!

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4 Responses to “Tumblr is Valued at $800 Million: Too Much?”

  1. September 11, 2011 at 7:46 pm #

    I actually don’t think that $800 Million is too much. Tumblr is an increasingly valuable platform to brands, especially in the high-end, luxury goods market. I think that it’s still under-used, and that we will be seeing much more of Tumblr over the next 12 months, or so. Tumblr is something that I am recommending highly to my clients, especially those in the fashion and retail space.

    • September 13, 2011 at 10:17 pm #

      Darren,

      Tumblr is cool, indeed. However, from business perspective, I’m curious how much Tumblr is making to justify the $800 million…

  2. August 27, 2011 at 10:40 am #

    It’s a bubble and it’s gonna burst soon enough. Coz all this social networking is also social “not-working”.

    We’re communicating too much. We’re all marketing experts.

    But who does the cooking? Who makes the bread? Who develops new products that actually solve a problem? Who’s working hard?

    800 million is too much, that’s why hey should sell if anybody makes them an offer.

    • August 30, 2011 at 11:41 pm #

      Constantin,

      Yes – I think so, too. Unless there’s a legitimate tumblelog monetization strategy (other than selling themes in the marketplace) to make sense the $800 million valuation, I think it reminds me to the ecommerce bubble burst in the year 2000.

      Coz all this social networking is also social “not-working” – LOL, well said!

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