Yahoo in Process of Buying Tumblr for $1.1 Billion

By | Tumblr, Yahoo | No Comments

If you like to casually browse the internet for videos, photos, music, blogs, and more, you are probably familiar with Tumblr.

Tumblr allows users to share anything and everything on a live feed. The site allows you to customize your dashboard with blogs you will be interested in. On your dashboard you can then comment on the blogs, reblog, and like posts that you find worthy. Similar to Twitter, tags are also created using hashtags (#). These hashtags are used to help other users find their post. For example, if this blog were being tagged on Tumblr I could use #Yahoo #Tumblr.

Added features for a user’s blog is the ability to use a custom domain name. For a blogger, editing your HTML coding to enhance the appearance of your blog helps it become more visible online and more appealing to readers.

Beginning a year ago this month, Tumblr began allowing advertisers to run campaigns on their site. Companies are also able to promote their posts to reach a larger audience. According to Lee Brown, Tumblr’s Head of Sales, the average ad purchase on Tumblr is just under six figures. Other sources of revenue include selling themes to those users who wish to improve the appearance of their blog. These huge sales are likely what got Yahoo’s attention. 

Yahoo in the process of buying Tumblr

Yahoo! Inc is in the process of purchase this growing blogging network for a very high price. This acquisition will cost Yahoo approximately $1.1 billion (pocket change, right?).

I assume Tumblr users hope to see little to no changes to the process of posting and sharing blogs. Users, along with Tumblr CEO, David Karp (only 26!), hope to not see Tumblr have the same fate as Geocities and Flickr. After Yahoo acquired these sites, they were neglected and “got lost” inside Yahoo.

Why is Yahoo buying Tumblr?

Yahoo CEO, Melissa Mayer, is choosing to make this aggressive move in an attempt to challenge Google and Facebook in the realm of social media. With around 108 million blogs, Yahoo is hoping to capitalize on this audience. With this purchase, Tumblr is expected to expand Yahoo’s audience by 50 percent.

In order to succeed, Yahoo will need to have a positive impact on a user’s experience. Things to avoid would be overwhelming users with ads and taking away Tumblr’s “cool factor”. Yahoo and Tumblr will now have to work together to keep the site interesting and its users active while inconspicuously increasing ad sales.

We should see this deal finalize by the end of the year, but possibly much sooner. So will Tumblr bloggers embrace this change or show resistance?