Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Mobile Tech
Real-time info services with Neustar
Average Rating:
Rate this article:  
Yahoo Vows
Yahoo Vows 'Not To Screw Up' Tumblr with $1.1B Purchase

By Jennifer LeClaire
May 20, 2013 10:55AM

    Bookmark and Share
With the acquisition, Tumblr brings 50 billion blog posts -- and 75 million more arriving each day -- to Yahoo's media network and search experiences. But Tumblr also sees benefits. For example, Tumblr can deploy Yahoo's personalization technology and search infrastructure to help its users discover creators, bloggers, and content that caters to their tastes.
 



Yahoo is making a mega-acquisition in social media. The search engine prince has agreed to buy the hip Tumblr blogging service for $1.1 billion, and is promising "not to screw it up."

In fact, Yahoo is so determined "not to screw it up" that it has agreed to allow Tumblr to operate independently as a separate business. Tumblr CEO David Karp will remain at the helm. Yahoo also said the product, service and brand will continue to be defined and developed separately with "the same Tumblr irreverence, wit, and commitment to empower creators."

"Tumblr is redefining creative expression online," said Yahoo CEO Marissa Mayer. "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."

Staggering Numbers

Tumblr boasts more than 300 million monthly unique visitors and 120,000 sign-ups every day. That makes it one of the fastest-growing media networks in the world. What's more, Tumblr sees 900 posts per second and users spend 24 billion minutes on site each month. Tumblr also has a strong mobile play. More than half of Tumblr's subscribers use the mobile app, with an average seven sessions per day.

As Yahoo sees it, Tumblr's popularity and engagement among content creators, curators and audiences of all ages brings a significant new community of users to its network. The combination of Tumblr and Yahoo is expected to grow Yahoo's audience by 50 percent to more than a billion monthly visitors, and to grow traffic by approximately 20 percent.

Tumblr brings 50 billion blog posts -- and 75 million more arriving each day -- to Yahoo's media network and search experiences. But Tumblr also sees benefits. For example, Tumblr can deploy Yahoo's personalization technology and search infrastructure to help its users discover creators, bloggers, and content that caters to their tastes. The two companies will also work together to create advertising opportunities.

Making the Turnaround More Difficult?

Rob Enderle, principal analyst at the Enderle Group, said acquisitions like this have between a 10 percent and 20 percent success rate, so it's going to be difficult for Yahoo not to screw it up.

"Tumblr already has ads on the service but it's not profitable, so that means they are going to have to increase the ad rate to get the revenue up," Enderle told us. "It's a social network that deals with a relatively young demographic. Young demographics age out of the service and tend to be very fickle in terms of the services they occupy, so retention becomes a problem."

Tumblr's staff is also young and is about to come into plenty of money. Keeping the young staff focused -- or perhaps even keeping them in the company -- is going to prove difficult, Enderle said. Then there's just the timing of the acquisition.

"It's generally advised that you don't do any acquisitions until after you've completed a turnaround because you don't want to increase the complexity of the firm. You want to decrease complexity until you are out of the woods," Enderle said. "Yahoo isn't out of the woods yet. So this just makes it more difficult for them to complete the turnaround successfully."
 

Tell Us What You Think
Comment:

Name:





 Mobile Tech
1.   Apple and Samsung Feel the Heat
2.   Is the Amazon Fire Phone a Winner?
3.   Review: Amazon's New Fire Phone
4.   Apple Smart Watch Patent Surfaces
5.   iPhone 6: Bad for Apple Tablet Sales?


advertisement
Android SMS Worm on the Loose
Malware lets bad actors cash in.
Average Rating:
Is the Amazon Fire Phone a Winner?
It coulda been a contender -- but isn't.
Average Rating:
Review: Amazon's New Fire Phone
New ways to navigate, discover, shop.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Researchers Working To Fix Tor Security Exploit
Developers for the Tor privacy browser are scrambling to fix a bug revealed Monday that researchers say could allow hackers, or government surveillance agencies, to track users online.
 
Wall Street Journal Hacked Again
Hacked again. That’s the story at the Wall Street Journal this week as the newspaper reports that the computer systems housing some of its news graphics were breached. Customers not affected -- yet.
 
Dropbox for Business Beefs Up Security
Dropbox is upping its game for business users. The cloud-based storage and sharing company has rolled out new security, search and other features to boost its appeal for businesses.
 

Enterprise Hardware Spotlight
Tablet Giants Apple and Samsung Feel the Heat
When a company saturates its home market with a once-hot product, expect it to pump up efforts elsewhere. Apple, for its part, is now pushing iPads to big corporations and the enterprise market.
 
Microsoft Makes Design Central to Its Future
Over the last four years, Microsoft has doubled the number of designers it employs, putting a priority on fashioning devices that work around people's lives -- and that are attractive and cool.
 
Contrary to Report, Lenovo's Staying in Small Windows Tablets
Device maker Lenovo has clarified a report that indicated it is getting out of the small Windows tablet business -- as in the ThinkPad 8 and the 8-inch Miix 2. But the firm said it is not exiting that market.
 

Mobile Technology Spotlight
Tablet Giants Apple and Samsung Feel the Heat
When a company saturates its home market with a once-hot product, expect it to pump up efforts elsewhere. Apple, for its part, is now pushing iPads to big corporations and the enterprise market.
 
Is the Amazon Fire Phone a Winner?
A late entry into a packed category of smartphones, Amazon's Fire phone offers a variety of unique features. Now, the reviewers are assessing if they're enough to make the phone stand out.
 
Review: Amazon Fire Offers New Ways To Use Phones
The Fire phone uses Android, but Amazon has modified it to the point that it's barely recognizable. That means the phone offers new ways to navigate, discover and, of course, shop.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.