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. Please click for more information, or scroll down to pass the ad, or Close Ad.
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Mobile Tech
24/7/365 Network Uptime!
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:



APC has an established a reputation for solid products that virtually pay for themselves upon installation. Who has time to spend worrying about system downtime? APC makes it easy for you to focus on business growth instead of business downtime with reliable data center systems and IT solutions. Learn more here.


 Mobile Tech
1.   Cortana Fills Windows Phone Gap
2.   Galaxy S5 Phone: Less Can Be More
3.   Beware: Facebook Shares Your Locale
4.   Android Gets Chrome Remote Desktop
5.   Amazon 3D Smartphone Pics Leaked


advertisement
BlackBerry Drops T-Mobile After Spat
Moving on to other carriers after snub.
Average Rating:
Cortana Fills Windows Phone Gap
Siri-like virtual assistant has promise.
Average Rating:
Galaxy S5 Phone: Less Can Be More
Most formidable iPhone competitor yet.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Heartbleed Could Cost Millions, Could Have Been Prevented
Early estimates of Heartbleed’s cost to enterprises are running in the millions. The reason: revoking all the SSL certificates the bug exposed will come at a very hefty price. Some say it all could have been avoided.
 
Michaels Says Nearly 3M Credit, Debit Cards Breached
Arts and crafts retail giant Michaels Stores has confirmed that a data breach at its POS terminals from May 2013 to Jan. 2014 may have exposed nearly 3 million customer credit and debit cards.
 
Google's Street View Software Unravels CAPTCHAs
The latest software Google uses for its Street View cars to read street numbers in images for Google Maps works so well that it also solves CAPTCHAs, those puzzles designed to defeat bots.
 

Enterprise Hardware Spotlight
Vaio Fit 11A Battery Danger Forces Recall by Sony
Using a Sony Vaio Fit 11A laptop? It's time to send it back to Sony. In fact, Sony is encouraging people to stop using the laptop after several reports of its Panasonic battery overheating.
 
Continued Drop in Global PC Shipments Slows
Worldwide shipments of PCs fell during the first three months of the year, but the global slump in PC demand may be easing, with a considerable slowdown from last year's drops.
 
Google Glass Finds a Home in Medical Education, Practice
The innovative headpiece may find its niche in markets where hands-free access to data can be a big advantage. Glass experiments for doctors are already under way, with some promising results.
 

Mobile Technology Spotlight
Review: Siri-Like Cortana Fills Windows Phone Gap
With the new Cortana virtual assistant, Windows catches up with Apple's iOS and Google's Android in a major way, taking some of the best parts of Apple's and Google's virtual assistants, with new tools too.
 
With Galaxy S5, Samsung Proves Less Can Be More
Samsung has produced the most formidable rival yet to the iPhone 5s: the Galaxy S5. The device is the fifth edition of the company's successful line of Galaxy S smartphones, and shows less can be more.
 
Facebook Rolls Out Potentially Intrusive Location-Sharing
Looking for friends? Facebook users in the U.S. will soon be able to see which of their friends are nearby, using a smartphone's GPS. Could be a cool feature in some cases, or way too much information.
 

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 | Small Business | 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 | XML/RSS Feed

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.