Yahoo! Tumbling into a Merger

by Adrienne Erin. 0 Comments

The biggest names in the tech world right now are Yahoo! and Tumblr. If you haven’t already heard, Yahoo! has acquired the blogging site, Tumblr, for an astounding $1.1 billion. Not only is this the biggest social media acquisition in years - passing Facebook’s acquisition of Instagram for $1 billion about a year ago – it also has the potential to fail astronomically.

It is clear that business professionals and technology bloggers cannot make up their mind on whether they believe this is a good partnership or not. Let’s take a look at the different stances.

Success:

Audience – when you combine Yahoo! and Tumblr, more than a billion monthly visitors will be frequenting these sites. Looks like Yahoo! was willing to pay $1 for every viewer they’d have! This is an increase to Yahoo!’s traffic by 50 percent, exactly what the aging site needs.

Tumblr Data – this data will be able to personalize each person’s Yahoo! page. When a user is logged into Tumblr – which most users always are – they will also log into Yahoo! and see a new personalized page with information and interesting news gathered from what they tend to prefer on Tumblr.

Younger Crowd – Yahoo! has had many issues bringing in a younger group of people to their site. Tumblr is practically run by teenagers and people in their twenties. Even the CEO of Tumblr is only 26! This merger will hopefully bring the younger crowd to Yahoo!.

Failure:

Marissa Mayer – known for being late to every meeting, she says that she will leave Tumblr alone and let it do its thing in New York City. Will she keep this promise? Mayer said, "On many levels, Tumblr and Yahoo! couldn't be more different, but, at the same time, they couldn't be more complementary. Yahoo! is the Internet's original media network. Tumblr is the Internet's fastest-growing media frenzy. Both companies are homes for brands - established and emerging. And, fundamentally, Tumblr and Yahoo! are both all about users, design, and finding surprise and inspiration amidst the everyday."

Ads – Tumblr’s biggest issue was how to turn a profit. Their free service was able to generate some cash from investors, but the users of the service never pay anything. A way they may try to fix this is by allowing users to run ads on their microblog. Would this scare people away and make Tumblr look less appealing to users?

Better for Tumblr – Will this deal benefit Tumblr more than it will Yahoo!? Tumblr already would be given $1.1 billion dollars, enough to last a lifetime for some of the employees. Will they continue to work at Tumblr, or spend the rest of their days goofing off in plunge pools? Only time will tell.

What do you think of this merger? Will it benefit both companies, or is this the death of Tumblr?

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