Yahoo’s Tumblr Deal ‘Tough to Swallow’: Bibb

Yahoo's $1.1 billion acquisition of Tumblr filled a need but may have been too expensive, Mediatech Partners' Porter Bibb said Monday.

"It's a good deal for Yahoo shareholders," he said, noting that Yahoo CEO Marissa Meyer move provided the company an entry point into social media. "She's got a very attractive target in what she's bought, but nobody knows whether she can deliver."

On CNBC's "Fast Money," Bibb said that Yahoo still needed to build out its mobile presence.

"The business is rapidly moving to mobile," he said. "Tumblr hasn't got a big franchise yet in mobile, but it has the content it can draw to mobile, and Yahoo's losing share. They have less than 9 percent of the total internet advertising share right now, so they've got to do something to shake up Madison Avenue, as well as the investors."

(Read More: Jim Cramer: Yahoo's Tumblr Acquisition 'Works')

The price Yahoo paid for the popular Tumblr platform appeared expensive, Bibb added.

"It's a huge premium," he said. "What's 50 times revenue? Is that too much?

"Yahoo, unfortunately, has a history of overpaying. They paid Mark Cuban $6 billion for They bought Overture for $3.4 billion," he said.

Bogle said that Yahoo's $34 million acquisition of news aggregator Summly "made sense."

"A billion-one is really, really tough to swallow," he added. "It's a very expensive acquisition."

(Read More: Facebook Mobile 'Failing': Porter Bibb)

Joe Terranova of Virtus Investment Partners had a clear view of the deal.

"If you're in yahoo, I think you stay in Yahoo," he said.

Terranova also shared a theory.

"This may be out there for you," he said. "There's something about what she's doing that makes me believe she's positioning to sell this company three, four, five years from now and get that second chance Yahoo had with Microsoft. And I don't know if it would be Microsoft. Maybe it's her friends at Google. But to me it just looks like that's what she's doing."

Disclosure: CNBC has a content-sharing partnership with Yahoo's finance site.

Trader disclosure: On May 20, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Simon Baker is long AAPL; Simon Baker is long C; Simon Baker is long GS; Simon Baker is long JPM; Simon Baker is long CSCO; Simon Baker is long YHOO; Simon Baker is long GOOG; Simon Baker is long EBAY; Simon Baker is long PCLN; Simon Baker is long JCP; Jon Najarian is long JPM; Jon Najarian is long ZNGA; Jon Najarian is long HLF; Jon Najarian is long DAL; Jon Najarian is long LCC; Jon Najarian is long XLF; Jon Najarian is long JCP; Jon Najarian is long NTAP; Jon Najarian is long OC; Jon Najarian is long TMO; Jon Najarian is long GTAT; Jon Najarian is long EMC; Jon Najarian is long COP; Jon Najarian is long GRPN; Joe Terranova is long VRTS; Joe Terranova is long SJM; Joe Terranova is long SPLK; Joe Terranova is long LNKD; Joe Terranova is long TBT; Joe Terranova is long SWN; Joe Terranova is long JULY CRUDE OIL FUTURES; Stephanie Link is long AAPL; Stephanie Link is long GS; Stephanie Link is long JPM; Stephanie Link is long WFC; Stephanie Link is long CSCO; Stephanie Link is long FB; Stephanie Link is long EBAY; Stephanie Link is long TJX; Stephanie Link is long HD; Stephanie Link is long SWK.