Just regarding the price tag, it's probably not actually $3m. Even the source article states:
A source familiar with the deal puts the price-tag "well below" $20 million, while another source puts it below $10 million.
Yeah, we don't know the details.
But suffice to say that this deal by Yahoo! was a disaster. It's similar to both the YouTube and Instagram acquisitions in approximate cost.
It's kind of incredible that they managed to do so much damage to Tumblr's value. Then again, it's Yahoo. If anyone can do it, it's them.
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