They have to, as they are way behind in mobile and nobody good wants to work there.
Sumly is three people and they paid about $30 million for it. Start throwing million dollar /year offers and many "good" programmers will want to work there. This stinks, IMO.
I'd agree they're overpaying because they're behind, but let's not simplify this too much. They did not pay $30m to 3 people in exchange for them 3 people working with them.
Yahoo! paid $30 mil and, in exchange, got 3 people working for them. Not all the money made its way into those people's hands, but from Y!'s perspective I think the summary is fair.
Sumly is three people and they paid about $30 million for it. Start throwing million dollar /year offers and many "good" programmers will want to work there. This stinks, IMO.