CHART OF THE DAY: The Reason Yahoo Bought Tumblr (And The Reason To Be Sceptical)

All Things D’s Peter Kafka summed up Yahoo’s $1.1 billion acquisition best, saying on Twitter, “Resist urge to attach Big Ideas to Yahumblr. Yahoo is a declining company trying to buy growth. Might work, might not. Full stop.”

This chart of Tumblr’s traffic illustrates that growth. As you can see, it has exploded over the past few years.

If there’s reason for concern about the deal, it’s in this chart, though. As you can see, since November traffic is slightly down. This might be a blip, or this might be part of a long term trend. For Yahoo’s sake, it better just be a blip.

Chart of the day shows unique visits to tumblr, may 2013

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