[venomsnake]

Well yahoo has things to offer to the tumblr team - a lot of technical and scalability know how. I won't be surprised if they are able to shave operating costs a lot and utilize better the labor force.

The problem is that the valuable asset of tumblr are its users. And users are fickle bunch.

[w1ntermute]

Cutting costs is nice and all, but these are Internet companies. It's expected that an acquisition will bring about much more substantial synergies than they would for the merger of two ketchup companies.