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This would be a really great idea for Yahoo. Their business model is selling ads on content, and the growth of mobile is leaving them behind. Tumblr generates e

by seldo 13y ago

This would be a really great idea for Yahoo. Their business model is selling ads on content, and the growth of mobile is leaving them behind. Tumblr generates enormous volumes of content and is making the majority of its revenue off mobile advertising already. In addition, Yahoo's demographics skew old, while Tumblr's are much younger. It's less clear why it would be a good idea for Tumblr, other than being a really great exit for their investors and early staff -- but at the right price, that could be enough, which is probably why the number we're hearing is so large. The biggest risk for both parties is Yahoo somehow killing Tumblr by starving it of resources (like they did with Flickr, and arguably with Delicious). I think Marissa Mayer is smart enough to learn from that mistake -- she has been pouring resources into Flickr, although it's probably too late to save it. (Disclosure: I am a former Yahoo)

minimaxir 13y ago
In addition, Yahoo's demographics skew old, while Tumblr's are much younger. The "younger" part of that equation isn't a good thing. If Yahoo makes any changes to Tumblr, the userbase will respond violently.
- seldo 13y ago
  I don't see why Yahoo would make any visible changes to Tumblr[1]. They care about the ad inventory; if they are smart they will leave the actual form of the site up to the people who invented it. [1] although, as with Flickr, any changes that people don't like will thenceforth be blamed on Yahoo, whether or not it had anything to do with them
  - ryanglasgow 13y ago
    If they acquire the company, they'll need to monetize it which is a significant visible change. Tumblr's core demographic is notorious for responding to advertising very poorly, and the founder is clearly disinterested and clueless when it comes to monetization.
    - tytyty 13y ago
      This is a dated sentiment. According to this Forbes article Tumblr is on track to make $100 million in revenue this year. http://www.forbes.com/sites/jeffbercovici/2013/01/02/tumblr-david-karps-800-million-art-project/ http://www.forbes.com/sites/jeffbercovici/2013/01/02/tumblr-... Tumblr has actually managed to pull off ads very, very tastefully. With brand and product recognition and well thought out ad-campaigns that feel like a part of Tumblr rather than banner ads.

by seldo 13y ago

minimaxir 13y ago

In addition, Yahoo's demographics skew old, while Tumblr's are much younger. The "younger" part of that equation isn't a good thing. If Yahoo makes any changes to Tumblr, the userbase will respond violently.

seldo 13y ago
I don't see why Yahoo would make any visible changes to Tumblr[1]. They care about the ad inventory; if they are smart they will leave the actual form of the site up to the people who invented it. [1] although, as with Flickr, any changes that people don't like will thenceforth be blamed on Yahoo, whether or not it had anything to do with them
- ryanglasgow 13y ago
  If they acquire the company, they'll need to monetize it which is a significant visible change. Tumblr's core demographic is notorious for responding to advertising very poorly, and the founder is clearly disinterested and clueless when it comes to monetization.
  - tytyty 13y ago
    This is a dated sentiment. According to this Forbes article Tumblr is on track to make $100 million in revenue this year. http://www.forbes.com/sites/jeffbercovici/2013/01/02/tumblr-david-karps-800-million-art-project/ http://www.forbes.com/sites/jeffbercovici/2013/01/02/tumblr-... Tumblr has actually managed to pull off ads very, very tastefully. With brand and product recognition and well thought out ad-campaigns that feel like a part of Tumblr rather than banner ads.