51–60 of 120 posts
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…
Isn't something really weird going on in the world when you can sell a company with almost no revenue (let alone profit) and no obvious business model in the horizon for $ 1.1B, or is it just me?
You are buying the potential for profit. Not exactly the same thing, but in a way it's similar to buying a broadcast license. Companies pay millions/billions for the right to project some media onto eyeballs.
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how to do this without wrecking the tumble user experience is a huge challenge. One of the great things about tumblr timelines is information purity (and great curation by its users). iirc yahoo's strongest services are sports, news, finance, and mail. these would all seem to disrupt the feel and information purity of tumble if done carelessly. maybe encouraging sharing/linking and extrapolating on yahoo assets by me…
Would you say you've noticed how the YouTube user experience has changed over the past five years? I don't mean whether you like it personally or not, but whether the overall YT-as-site UX has been ruined in their acquisition by Google. I think we're all inured a bit to site shutdowns through acquisitions, meaning that acq's have taken on a largely negative set of assumptions, but it doesn't have to be that way.
You say that "it doesn't have to be that way" w.r.t. acquisitions having a negative impact on an acquired service, and I agree that in theory, there really is no way the product has to be damaged. But there are agendas and incentives, and more often than not, we have seen first hand that the acquired products do get damaged. Maybe we can get lucky at times like Youtube, but our scar tissue didn't form from nothing.
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…
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Please note, I have zero inside information on this. Wikipedia attributes cofounder status to Marco[1]. Let's assume that he got a raw deal from Karp and had a potential 30% stake in the business. He worked on it for 3 years and 7 months. Let's just assume he fully vested (not quite accurate, but the math is easier). Over the course of five rounds of funding, maybe the final ownership stake of the founders was dilute…
David Karp has 25% of Tumblr [1], and makes it clear, that to start off with - it really was just David and Marco. "...Marco Arment, Karp’s first and, for a long time, only employee at Tumblr." http://www.forbes.com/sites/jeffbercovici/2013/01/02/tumblr-...
"Employee"
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…
I think the (possible) acquisition means a lot more for Yahoo's ability to attract talent than it does for the business bottom line. Probably the same thing, but only in the longer term. If they acquire tumblr and shut it down, or make changes that result in a receding of the user base, then they are unlikely to acquire talent. If they acquire tumblr and improve it, they will improve they position in the talent acqui…
* I live in New York, thus don't mean this as slight.