Yahoo!'s New York Yankees' StrategyEverybody has an analogy; we should compare analogies to ***holes, not opinions. And they're quite frequently farther away from the mark. Supporters of the deal parallel the Tumblr acquisition to Google's ( GOOG) successful purchase of YouTube. A few have even justified it by pointing to Microsoft's ( MSFT) buyout of Skype. Sounds great, but, ultimately, these are both flawed analogies.
YouTube and Skype both fit, more than logically, into successful existing platforms. Google did an excellent job integrating YouTube into its ecosystem and previewing the vision. It took Microsoft longer -- and they're still not there -- but they're moving in a more valid direction each day. You would think that one day, the world would associate Skype not only with Windows and Xbox, but with video calling broadly. (To an extent it already does: "Hey, let me Skype you!). Whether Steve Ballmer can execute or not is neither here nor there, but the fundamental vision makes sense.