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Yahoo Board to Meet Sunday to Consider $1.1B, All-Cash Deal for Tumblr

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Re: Yahoo Board to Meet Sunday to Consider $1.1B, All-Cash Deal for Tumblr

#2
This will be the first big test of Marissa Mayer, to buy a significant property and leverage it without destroying its user base in the process. If Tumblr is rebranded in purple, it will all be over. I wish Yahoo the best in the endeavor, but their track record in acquisitions is not good.

Re: Yahoo Board to Meet Sunday to Consider $1.1B, All-Cash Deal for Tumblr

#4
Well, looking forward to the next Accidental Tech Podcast - should be very interesting to get Marco Arment's perspective on this. First Instapaper, now Tumblr.

I wonder which will be a bigger deal for Marco...

[Edit - I also wonder whether he had an inkling that these conversations were taking place. He has been discussing his tumblr roots a bit more than usual recently, including his undocumented podcast easteregg that he built into tumblr, and the fact that the tumblr source code was open source, but not public, which allowed Marco to use it for future endeavors...

Edit 2: And this little hint from his Blog on May 11th.

"I ended up joining Davidville instead, for less money, because David would let me work on a brand new Mac with any keyboard I wanted and more than three feet of desk space. A few months later, we started Tumblr. Turned out to be the right move. "

]

Re: Yahoo Board to Meet Sunday to Consider $1.1B, All-Cash Deal for Tumblr

#5
Yahoo needs a company like this to address two major issues. First, they lack a social offering. Second, they need to draw in more users, and I imagine Yahoo is hoping to bring over a large user base to their other products via integration with their ecosystem. If Yahoo does acquire tumbler, it will be interesting to see how they choose to integrate it (if they do at all).

Re: Yahoo Board to Meet Sunday to Consider $1.1B, All-Cash Deal for Tumblr

#6
If the deal goes through Yahoo would now own the Tumblr audience, so Yahoo would have a product with a young audience, the audience Marissa Mayer wants for Yahoo, however, how would they move that audience over to other Yahoo products?

An acquisition of Tumblr seems very much like the acquisition of reddit by Advance Publications. They both have huge audiences that are passionate and growing fast but have great difficulty monetising their audiences effectively and are providing no real value to the parent company (other than the potential for the sites to become profitable). If Yahoo bought Tumblr how would they ever convert the audience into Yahoo users?

I guess it comes down to: what value is there to any company in "owning" an audience if that audience has no interest in becoming the audience of the parent and will actively resist it? People would get very angry if AP started pushing their ownership of reddit onto reddit users, having Wired articles automatically frontpaged, things like that would drive everyone away, how will Yahoo avoid that?

Re: Yahoo Board to Meet Sunday to Consider $1.1B, All-Cash Deal for Tumblr

#7

If the deal goes through Yahoo would now own the Tumblr audience, so Yahoo would have a product with a young audience, the audience Marissa Mayer wants for Yahoo, however, how would they move that audience over to other Yahoo products? An acquisition of Tumblr seems very much like the acquisition of reddit by Advance Publications. They both have huge audiences that are passionate and growing fast but have great diffi…

Bringing the audience over would certainly be a Herculean effort of integrating existing services. As an example Google plus has been integrated into nearly every facet of googles offerings. Yahoo will need to do the same with tumblr, and all of their products, in order to compete. People expect their experience across a companies various products to be seamless now days.

Re: Yahoo Board to Meet Sunday to Consider $1.1B, All-Cash Deal for Tumblr

#8

If the deal goes through Yahoo would now own the Tumblr audience, so Yahoo would have a product with a young audience, the audience Marissa Mayer wants for Yahoo, however, how would they move that audience over to other Yahoo products? An acquisition of Tumblr seems very much like the acquisition of reddit by Advance Publications. They both have huge audiences that are passionate and growing fast but have great diffi…

"how would they move that audience over to other Yahoo products?"

The way the article is phrased (though we must remember it's third-hand at best) leads me to believe the strategy may be to go the other direction, to meld core Yahoo strengths (whatever that may be) into Tumblr. That is, integrate Yahoo offerings into Tumblr rather than the other way around.

Re: Yahoo Board to Meet Sunday to Consider $1.1B, All-Cash Deal for Tumblr

#9
post #3

If this does happen it will be very interesting to see Tumblr's progress over the next year. Will give insight into whether Yahoo has turned the corner or whether it is the same Yahoo we have seen in the past 5 years.

Agressive acquisitions such as this one are already signaling change at the company. The real question is whether that change is meaningful in terms of acquiring users and maximizing profits.

Re: Yahoo Board to Meet Sunday to Consider $1.1B, All-Cash Deal for Tumblr

#10

If the deal goes through Yahoo would now own the Tumblr audience, so Yahoo would have a product with a young audience, the audience Marissa Mayer wants for Yahoo, however, how would they move that audience over to other Yahoo products? An acquisition of Tumblr seems very much like the acquisition of reddit by Advance Publications. They both have huge audiences that are passionate and growing fast but have great diffi…

you've just described Facebook for me (relative to the services fb wants me to use)
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