I object to the math here.

Just because many investors were not taking Yahoo's cash into account in valuing the company does NOT mean that they spent less than 1.1 billion for Tumblr.

The issue with spending 1.1 billion for Tumblr is that this is 108 other companies that they can't buy for 10 million each (assuming $20 million to assess the companies). Which is OK, I suppose, if Tumblr is worth it, but are they?

Yeah, exactly. Is this author drunk? Just because they found some cash somewhere else, doesn't mean they didn't spend it...

"The company is on track to make $100 million this year."

So they have a goal of making $100 million. They make $13 million in the first 4-5 months. They are "on track."

Wait...

No, they made 13 million in their first quarter this year - the same as they did all of the last year.

It is not unreasonable to expect them to reach the 100 million goal. They are growing their income at a fast rate, so it is fair to say they are on track.

It was not like it got the 832 something million for free. This article just waste a couple minutes of my time.