Yahoo! has been on a spending spree for the past year, grabbing everything from natural language startup Summly to blogging giant Tumblr and the company may not be finished, with news Marissa Mayer is looking to grab photo sharing website Imgur.
Imgur is one of the most popular photo sharing websites and is being rapidly used on Reddit, we can see why Yahoo! may have their eyes open for the buy in. The question is has Imgur got any real profit margins and does it have enough of a userbase to make Yahoo! any long term investment.
The story of Imgur is straight-forward, Alan Schaff decided there was not a good photo sharing website for users to instantly upload and link to and he decided to make one for Reddit, it quickly became popular and users switched from their old work-arounds to Imgur.
Since it is so easy to use and so accessible, with users being able to add a photo and link without actually making an account, it has withdrawn the amount of actual users on Imgur who have registered and actively use their account to upload photos.
Yahoo! may see long term investment but from a Reddit standpoint this is a bad thing, since Yahoo! likes to either cut the startup down and take the spoils or start quietly integrating their own media and services into the subsidiary, slowly making it their own.
Reddit has never been one to make acquisitions but they may look to battle it out against Yahoo!, considering most of their users go to Imgur to upload photos, either that or Reddit will implement their own photo sharing solution in the coming months.
Imgur has never said they really want to be acquired by any company, the owner obviously only wanted to build a solution to all the half-works photo sharing solutions and he has succeeded and probably makes a mint from the millions of daily visitors.
Imgur is priced somewhere between $100 million and $500 million, but in the times where users and function mean everything, Imgur could price could surprise us, just as Instagram, Tumblr and Twitter IPO did.