Yahoo Purchases Tumblr for $1.1 Billion

Posted in Brand & Web Design on May 30th, 2013

It was a huge week for the blogosphere when Yahoo purchased Tumblr for $1.1 billion. An absolutely astonishing amount when you consider Tumblr only profited $12 million in 2012. It’s left many of us wondering, “What in the world was Yahoo thinking?”

If you’re unfamiliar with the term “blogosphere,” don’t worry, it’s just jargon referring to the blogging community.

Now, back to Yahoo and Tumblr.

pineapple

Yahoo purchases Tumblr for $1.1 billion!

Pineapple Thoughts:

The acquisition puzzled our bloggers at first, including me, but the more we thought about it, it made perfect sense! Let me explain. Tumblr is a big brand with younger internet users, a demographic Yahoo has spent the last year desperately trying to tap into.

Tumblr users have voiced several concerns over the last week and a half, mostly regarding the potential for personal blogs to be cluttered with Yahoo advertisements. Yahoo CEO Marissa Mayer eased the concerns of Tumblr users last week by publishing her own post, informing them Tumblr will continue to operate independently, with zero Yahoo branding. And most importantly, David karp, the founder of Tumblr will remain CEO.

Karp also made an effort to console the Tumblr community last week, and said, “Our team isn’t changing. Our road-map isn’t changing, Tumblr gets better faster with more resources to draw from.”

It’s an extremely bold move on behalf of Yahoo, and is very similar to other acquisitions (Remember Google and YouTube?). Yahoo has made several strategic moves this year including the purchase of Stamped. However, they immediately shut-down the operation, and put Stamped engineers to work at Yahoo. If you’re a loyal Yahoo user, you’ll also remember their homepage and Yahoo Mail re-design, and an updated Flickr.

Interestingly enough, since Yahoo hired Marissa Mayer, their stock is up 33% since last year. Their changes seem to be working, but is it enough for Yahoo to make a comeback? I guess we’ll all have to wait and see, but we suspect Google will remain King.

This post includes references to and we hope that will impress the nice folks at Google.

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