Yahoo's Tumblr Acquisition : $1.1 Billion Is Not Enough!
@thebigk
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Oct 25, 2024
Oct 25, 2024
1.4K
Ever since Marissa Mayer took over the control at Yahoo, the company's managed to grab some attention from the media. This time, it's about Yahoo's plans to buy Tumblr - the rapidly growing blogging / content generation platform. AllThingsD blogged that they've learned from the sources closer to the situation that Yahoo's board will meet on Sunday night whether they should really consider snapping Tumblr with $1.1 Billion all-cash offer. New York based Tumblr, is said to be looking for more and has reportedly rejected the takeover.
Yahoo's considered various options from strategic investment in Tumblr to complete acquisition as Marissa Mayer thinks that Tumblr's content generation platform is going to play a key role in Yahoo's future growth. Why is Tumblr so important for Yahoo? Well, because the platform has succeeded in attracting young content creators through their innovative blogging tools. Tumblr's growth has been astonishing in the recent months. The site's already managed to find place in top 10 sites with about 150 million uniques and tens of billion of impressions each month. It currently hosts about 108 million blogs containing about 50 billion posts.
Tumblr has raised close to $125 million so far from investors including Spark Capital, Union Square Ventures, Sequoia, Greylock VP, Insight VP and Chernin Group; and is reportedly valued at about $800 million.
What's in it for Yahoo?
It's no wonder that in order to resurrect its brand, Yahoo needs a lot of young audience - the kind Tumblr has built in the last few years. Getting access to this audience is going to be a lot easier by buying Tumblr for a billion dollars than finding out other ways or building viral products. Yahoo's only bought mobile focused companies in the recent times and has already made it clear that they are tad serious about growth via mobile. Yahoo will also be able to expand their advertising portfolio and be seen as an even bigger media property on the Internet.
What's in it for Tumblr?
Tumblr's said to be running out of cash fast - as the infrastructure costs are huge. It's got several months of run available with them. But more than that, Yahoo can quickly help Tumblr build a better infrastructure and also help Tumblr make more money through their own advertising network. Plus, Karp is said to be looking for a COO to help him build infrastructure. Mayer has already spend time with Karp assuring him how Yahoo can help Tumblr turbocharge business.
Tumblr however is waiting for Yahoo to up the offer, saying $1.1 Billion isn't enough. What do you say? Should Tumblr wait or grab the money?
Source: <a href="https://allthingsd.com/20130517/yahoo-board-to-meet-sunday-to-consider-1-1-billion-all-cash-deal-to-acquire-tumblr/" target="_blank" rel="noopener noreferrer">Yahoo Board to Meet Sunday to Consider $1.1B, All-Cash Deal for Tumblr - Kara Swisher and Peter Kafka - Media - AllThingsD</a>
Yahoo's considered various options from strategic investment in Tumblr to complete acquisition as Marissa Mayer thinks that Tumblr's content generation platform is going to play a key role in Yahoo's future growth. Why is Tumblr so important for Yahoo? Well, because the platform has succeeded in attracting young content creators through their innovative blogging tools. Tumblr's growth has been astonishing in the recent months. The site's already managed to find place in top 10 sites with about 150 million uniques and tens of billion of impressions each month. It currently hosts about 108 million blogs containing about 50 billion posts.
Tumblr has raised close to $125 million so far from investors including Spark Capital, Union Square Ventures, Sequoia, Greylock VP, Insight VP and Chernin Group; and is reportedly valued at about $800 million.
What's in it for Yahoo?
It's no wonder that in order to resurrect its brand, Yahoo needs a lot of young audience - the kind Tumblr has built in the last few years. Getting access to this audience is going to be a lot easier by buying Tumblr for a billion dollars than finding out other ways or building viral products. Yahoo's only bought mobile focused companies in the recent times and has already made it clear that they are tad serious about growth via mobile. Yahoo will also be able to expand their advertising portfolio and be seen as an even bigger media property on the Internet.
What's in it for Tumblr?
Tumblr's said to be running out of cash fast - as the infrastructure costs are huge. It's got several months of run available with them. But more than that, Yahoo can quickly help Tumblr build a better infrastructure and also help Tumblr make more money through their own advertising network. Plus, Karp is said to be looking for a COO to help him build infrastructure. Mayer has already spend time with Karp assuring him how Yahoo can help Tumblr turbocharge business.
Tumblr however is waiting for Yahoo to up the offer, saying $1.1 Billion isn't enough. What do you say? Should Tumblr wait or grab the money?
Source: <a href="https://allthingsd.com/20130517/yahoo-board-to-meet-sunday-to-consider-1-1-billion-all-cash-deal-to-acquire-tumblr/" target="_blank" rel="noopener noreferrer">Yahoo Board to Meet Sunday to Consider $1.1B, All-Cash Deal for Tumblr - Kara Swisher and Peter Kafka - Media - AllThingsD</a>
