Content Discovery Smackdown: Hootsuite vs. Buffer vs. KloutContent Marketing Minds: Ingredients of the Tastiest Content [Nutrition Label]From the Corn Field to the Digital Era: Content Marketing Starts with TrustContent Marketing: Is 2014 Really Shaping Up to Be the Year of Video?
Your Customers Aren’t Listening! How to Create Consumer Dialogue that Converts4 Tools for Nonprofit Social Listening and Reputation ManagementThe Promising Role of Social Listening in Treating Health IssuesThe Importance of Social Listening for Brands
- Public Relations
Facebook Testing a Way for Users to Buy Products on the Platform7 Website Tips to Attract More Shoppers to Your PagesHow eCommerce, Augmented and Virtual Reality Will Redefine the Retail ExperienceSearch Query Analysis to Increase eCommerce Website Conversions
- Content Marketing
Technology & Data
Social Startups: Bizible Connects All the Dots from Marketing Contributions to RevenueCreating the Perfect Profile for Your Social Media Marketing EffortUsing GPS and Localization for Social AnalyticsAnalytics and Prospect Intel: Discovering Your Ideal Prospect
- Big Data
- Tech & Innovation
3 Security Risks You’re Taking Every Day While Using Social MediaShould the President Have the Power to "Pull the Plug" on the Internet?How Safe is Your WordPress Website From Hackers and Other Malicious Attacks?
- Software & Tools
- Small Business
- Social Organization
Celebrating the Grand Re-Launch of Social Media Today! SBH Podcast Episode 8Why Should You Care If Your Employees Are Thought Leaders?Beyond Engagement: The Art of Managing Social-Media Risk in Employee Advocacy
Why All-in-One Social Media Management Systems Don't Cut It for Social Customer ServiceWhat You Should Know About Customer, Digital, and Contextual ExperienceSurging into Q3: How to Make It Better Than Q2Is How You Serve Your Customers Costing You Business?
Join us September 15th in Atlanta for The Employee Advocacy Summit and learn how to unleash the power of your employees.
Post your event here and we'll share it with our community. If one of our members is featured, we'll promote as well on their profile.
- Marketplace & Webinars
The SMT Marketplace
Your resource for exclusive content and insights from Social Media Today, and opportunities to reach our community of professionals.
The Social Business Book Club brings you books, discussions, and insights from today's to business thought leaders.
Join interactive talks and and panel discussions with leading thinkers and practitioners on social media and networked business, or browse the catalogue of recorded sessions - all completely free.
Reach Social Media Today's community of marketing and communications professionals in an editor-approved context with a native advertising package.
Will Yahoo Use Tumblr to Get Its Mojo Back, or Just Ruin It?
Posted on May 21st 2013
Days after Yahoo announced it would be integrating Tweets into its newsfeed the aged Internet giant has now completed a $1.1 billion acquisition of Tumblr.
Tumblr, the micro-blogging site that’s risen to popularity on a wave of GIFs, over-sharing, and porn, was previously valued at around $800,000 million dollars. However many insiders regarded even this number as high, considering David Karp, Tumblr’s CEO and founder has often expressly stated that he’s not interested in making money.
Yahoo’s Quest for Fountain of Youth
Nonetheless, the $1 billion dollar transaction is the biggest the web has seen since Facebook bought Instagram in 2012, and appears inline with many of the moves Yahoo has made since Marissa Mayer took over as CEO last year.
Since then, Yahoo has been looking to cover up a few grey hairs and reconnect with the coveted 18-24 year old demographic. Yahoo CFO Ken Goldman, speaking recently at JP Morgan’s Global Technology conference in Boston explained “One of our challenges is we have had an aging demographic. Part of it is going to be just visibility again in making ourselves cool, which we got away from for a couple of years.”
Mayer’s Eye for Tumblr
Yahoo’s acquisition of Tumblr comes not completely out of the blue. Mayer has already acquired around 10 smaller startups since taking over as Yahoo CEO in July of 2012. But those other acquisitions were much smaller and only added up to about $16 million in total, chump change by the standards of Internet megaliths. And back when Mayer was a Google exec she kept a close eye on Tumblr’s rapid growth.
Yahoo is banking on the notion that the acquisition will lead to some of Tumblr’s cool factor rubbing off on what many perceive as an aging network that’s struggled to remain relevant in recent years. Tumblr meanwhile, will likely be looking to benefit from Yahoo’s ad network and business savvy, in the hopes of emerging with something like a workable business plan or strategy for monetization.
King Midas in Reverse?
Of course, there is also the danger of a kind of King Midas in reverse syndrome, in which Yahoo short circuits Tumblr’s cool factor, either by tinkering with things too much or just by absorbing something that’s perceived as cool and cutting edge into a larger organization that’s regarded as passé and institutional in tech terms.
Yahoo also has a well-publicized history of failure when it comes to such acquisitions, that stretches all the way back to Geocities and includes more recent missteps like Flickr. But this time the aging Internet monolith has promised, “not to screw it up.”
While there is plenty that could go wrong, Yahoo need only look as far as Facebook’s acquisition of Instagram to see how things could go right. Instagram, although a property of Facebook, has largely been left on its own and Yahoo seems intent on doing the same with Tumblr, porn, GIFs, and all.
(Yahoo & Tumblr: good luck / shutterstock)