At some point in recent months, Twitter was reportedly in talks with Tumblr over a possible takeover, according to Gawker. The prospect of a new, integrated blogging platform rivaling Facebook would’ve been the endgame, but the financials of the proposed deal are head-scratching… especially when you consider that both have yet to turn profits despite hefty investments.
Twitter’s position is particularly untenable. Despite a valuation of around $8.4 billion, it lost around $30 million last year and its $760 million in investments would be a bit short of Tumblr’s $800 million valuation. Hence, Twitter tried to leverage its equity in negotiations ended by Tumblr.
For now, a merger is off the table, though it could very well be in the cards.
[via Gawker]
