Yahoo set to pay $1.1 billion for Tumblr, and everyone loses their shit

If you’re under the age of 25 you’ve probably heard of the popular micro-blogging site Tumblr. Full of gifs, fandoms, cats, selfies, and naturally, porn, amongst pretty much everything else you can think of, Tumblr is one of the hottest sites in the world, boasting around 108 million blogs, with over 50 billion posts in total, and Yahoo wants it.

Yahoo haven’t been having the best time of it these last few years. They went through 3 CEO’s last year alone, settling with the current CEO Marissa Meyer, a former Google executive and was Google’s employee number 20. Revenue has been slipping, jobs have been cut, and their status as holding the worlds largest share in online display advertising went long ago.

Tumblr’s hardly a financial gold mine either. Since starting up in 2007, they’ve raised over £125 million dollars, but their unimpressive revenue numbers and and last year’s loss of $28 million have stopped over big names like Google and Facebook from giving their own cash over. Or in simple terms, no-one wants to hand money to CEO David Karp when he seems to be pissing it away. So why does Yahoo want to spend $1.1billion? What do they see in it?

For starters, a much younger demographic than they’ve been getting. Quantcast estimates that 48% of Tumblr’s user base is under 24, an age range Yahoo have been struggling to attract. Plus Tumblr’s mobile growth is huge, quadrupling over the last 6 months. That’s not growth you can ignore.

There’s also the fact that Tumblr’s user base are fanatical about the site. While that last point is a big selling point, it has led to a bit of a backlash amongst users, in particular to the prospect of having large ads on their site, Yahoo’s poor track record with acquisitions, and the possibility of losing the porn. I did say 48% of them were under 24…

However, if you’re one of those worriers, fear not! For starters Marissa Meyer has proven that she knows what shes doing so far. Then there’s the fact that in a blog post today (on Tumblr of course) she announced that there’s going to be a very hands off approach involved, essentially leaving a much richer David Karp and team to do as they please. And yes, the porn can stay.

It also means we shouldn’t be seeing masses of adverts all over our nice clean dash, although Tumblr have already indicated they’re going to start experimenting with ads in a bid to become profitable, like every business should. Besides, if they did flood Tumblr with adverts, the user base would leave, and anyway, they have promised not to screw it up.

What are your thoughts on it? Scared shitless? Bit confused as to why Yahoo are spending this much? Not bothered? Leave it in the comments!

Tomorrow, I’m gonna hopefully blog about the new Xbox announcements. I say hopefully, because my sleep pattern sucks, but it’s looking likely!

Nicky

 

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Posted in News, Opinions, Thoughts and ramblings
One comment on “Yahoo set to pay $1.1 billion for Tumblr, and everyone loses their shit
  1. As long as Yahoo! stays true to their word and allows Tumblr pages to keep the ability to set custom domains, I am fine with Yahoo! assuming ownership.

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