Well, kind of.
The tech world reeled when Yahoo announced in May that it would buy Tumblr, the weblogs platform favored by those tech-savvy young ‘uns, for a total of $1.1 billion.
Five intriguing tidbits about the deal came out in Yahoo’s quarterly financial documents, which landed last night.
Most eye-popping: Yahoo bought Tumblr for $990 million (the remainder of the billion-plus total goes to founder David Karp and other Tumblr employees), and an incredible $751 million of that value was attributed to “goodwill.”
Goodwill is an accounting term for the worth of an intangible asset blahblahblah, and in this case it means brand value. So 75% of Tumblr’s value lies in its cool factor. (More details in our main CNNMoney story here.)
FJP: Read through for the rest but know who could have used a perception of cool? The Boston Globe. Founded in 1872, it sold to Boston Red Sox owner John Henry for $70 million. Or, if you take into account pensions and other debts, it sold for negative $40 million.
The Washington Post might wish it had some “goodwill” too. Amazon founder Jeff Bezos, of course, just bought the 136-year-old paper for $250 million.
Takeaways: Don’t get old. Stay cool. Valuations are a weird gig.