Yahoo paid $1.1 billion for Tumblr and its huge, young audience.
There are many reasons Yahoo-Tumblr makes sense, which we've run through here. (Yahoo gets audience, Tumblr gets time to build its business.)
There is, however, one good reason this deal doesn't make sense.
Yahoo is supposed to be buying a large, growing audience at Tumblr. But, according to data at Quantcast, traffic peaked in November, and has declined slightly since then.
Lots of companies go through periods of flat growth before exploding higher, so maybe this is just a blip.
If it's the start of a trend, though, it's a big problem for Yahoo.
Here's the chart, you can see the peak at November:
?Here's another look at it, you can see it peaks and declines.
And here's traffic over the last 12 months.
Source: http://www.businessinsider.com/why-yahoo-tumblr-skeptics-might-be-right-2013-5
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