Yahoo Acquires Tumblr for $1.1 Billion
May 20, 2013 11:12 AM
comment(s) - last by
The Yahoo/Tumblr deal will close in the second half of the year
Yahoo announced today that it will acquire Tumblr under a new agreement -- and even promised "not to screw it up."
Yahoo will acquire Tumblr for $1.1 billion in cash, according to a Yahoo press release. Yahoo likely hopes to use Tumblr's position as a popular social media site to attract visitors to Yahoo's other offerings and bump up search use by integrating it into Tumblr.
Tumblr has over 300 million monthly unique visitors; 120,000 signups every day; receives 900 posts per second; users spend 24 billion minutes on the site each month, and more than half of Tumblr’s users are using the mobile app and do an average of 7 sessions per day.
The new agreement is expected to widen Yahoo’s audience by 50 percent to over a billion monthly visitors. Traffic is also expected to grow by by 20 percent.
“Tumblr is redefining creative expression online,” said Yahoo CEO
. “On many levels, Tumblr and Yahoo! couldn’t be more different, but, at the same time, they couldn’t be more complementary. Yahoo is the Internet’s original media network. Tumblr is the Internet’s fastest-growing media frenzy. Both companies are homes for brands - established and emerging. And, fundamentally, Tumblr and Yahoo! are both all about users, design, and finding surprise and inspiration amidst the everyday.”
Under the new deal, Tumblr will be independently ran as a separate business, with Tumblr CEO David Karp keeping his position. Yahoo also assures that Tumblr will continue catering to users on the site the way it always has (meaning, Yahoo won't interfere with a good thing).
However, Tumblr will use Yahoo’s search and personalization technology to help users find creators and content.
“Our team isn’t changing," said David Karp, CEO of Tumblr. "Our roadmap isn't changing. And our mission – to empower creators to make their best work and get it in front of the audience they deserve – certainly isn't changing. But we’re elated to have the support of Yahoo! and their team who share our dream to make the Internet the ultimate creative canvas. Tumblr gets better faster with more resources to draw from.”
Yahoo could certainly use all the help it can get. Mayer is looking to lead the company back to profitability after it lost ground to search giant Google. Mayer has made many changes, including the requirement for all telecommuters to
start working in a local office
or quit (which some saw as a way to announce layoffs without officially calling it a layoff) and the
axing of seven products from its line
back in March (including the mobile app for BlackBerry users, Yahoo Avatars, Yahoo App Search, Yahoo Sports IQ, Yahoo Clues, Yahoo Message Board website, and the Yahoo Updates API).
The Yahoo/Tumblr deal will close in the second half of the year.
This article is over a month old, voting and posting comments is disabled
5/20/2013 11:58:37 AM
this is a pathetic attempt by a company that nobody cares about anymore to stay relevant. this is like AOL buying reddit.
yahoo is probably hoping that people will now care about it and whatever it does again, but i think the opposite -people will leave tumblr for greener shores- is more likely.
RE: this is
5/20/2013 1:04:29 PM
Aside from the fact that a lot of Tumblr blogs are about stuff that you really can't sell ads on, as I noted in an earlier post, one of the reasons Tumblr was so popular was because the guy running it was admittedly not all that interested in maximizing revenue - and to that end, there's not any advertising forced on Tumblr blogs.
Yahoo *has* to try to maximize revenue. In the internet world, that means advertising. And that means squeezing ads onto whatever blogs that aren't generally offensive to begin with.
Although I think there may also be ownership issues...like, if you have a Tumblr blog I'm not positive that the blog/content belongs to Tumblr - I think it might actually be yours. Which means that Yahoo probably can't put ads on your Tumblr blog without your permission, and probably without some kind of revenue sharing.
I can see this ending very badly for Yahoo.
"Game reviewers fought each other to write the most glowing coverage possible for the powerhouse Sony, MS systems. Reviewers flipped coins to see who would review the Nintendo Wii. The losers got stuck with the job." -- Andy Marken
Yahoo to Chop Seven Products from Its Line Including BlackBerry App
March 4, 2013, 8:33 AM
Yahoo Will Require Telecommuters to Come into the Office Starting in June
February 25, 2013, 8:12 AM
New Yahoo CEO Marissa Mayer to Receive $70 Million Over Five Years
July 20, 2012, 9:17 AM
Twitter Senior VP: "Diversity is Important, But We Can’t Lower the Bar"
November 9, 2015, 9:59 AM
CNN Resorts to Internet Censorship to Promote Clinton Over Senator Sanders
October 15, 2015, 2:47 PM
Breaking Bad: How to Crash Google's Chrome Browser With Just 8 Characters
September 23, 2015, 11:08 AM
Quick Note: Amazon UK Offers £10 Back on Any Order £50 or Over
August 3, 2015, 12:05 PM
Editorial: Reddit Allows Itself to be Hijacked as a Hate Platform For Racist Bigots
July 21, 2015, 6:32 PM
Mozilla and Facebook to Adobe: It's Time to Kill Flash
July 20, 2015, 6:30 PM
Most Popular Articles
Free Windows 10 offer ends July 29th, 2016: 10 Reasons to Upgrade Immediately
July 22, 2016, 9:19 PM
Smart Security Cameras: 5 Good Choices For Any Budget
July 25, 2016, 7:13 PM
Top 5 Smart Watches
July 21, 2016, 11:48 PM
2017 Porsche Panamera: I’ll Take Three of These.
July 24, 2016, 6:44 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information