By agreeing to buy Tumblr for about $1.1 billion, Yahoo has struck the biggest social media deal in years, putting it up against Facebook‘s $1 billion* acquisition of Instagram.
But who got the better deal?
Let’s take a look at what each company acquired through its deal-making.
Instagram- Founded in 2010
- Roughly 30 million users at the time of the acquisition
- 13 employees
- Approximately zero revenue
- Last pre-deal fundraising round valued company at $500 million
- Investors included Sequoia Capital, Thrive Capital and Greylock Capital
- Founded in 2007
- About 108.4 million blogs
- 175 employees
- About $13 million in revenue in 2012
- Last pre-deal fundraising round valued company at about $800 million
- Investors included Spark Capital, Union Square Ventures and Sequoia Capital
*(Because the offer was in cash and stock, and the value of Facebook shares fell, the deal ended up being worth closer to $700 million.)
