| Yahoo's Gamble
The New York Times Blogs (DealBook), May 21, 2013 Tuesday
To understand Yahoo's $1.1 billion acquisition of Tumblr, it may be useful to reflect on Yahoo's deal for GeoCities in 1999, Andrew Ross Sorkin writes in the DealBook column. Both Tumblr and GeoCities lost money when they were acquired. Both had at one point been averse to accepting advertising. Both companies had loyal followers that quickly left. The question raised by the GeoCities lesson, Mr. Sorkin writes, is, "How can a company with zero profits (actually, multimillion-dollar losses) and...