Yahoo Purchases Tumblr for $1.1 Billion

Shannon Turgeon, News Editor


Yahoo has recently made a bold move that may help to turn the company around. On May 2oth, the company announced their $1.1 billion dollar purchase of the wildly popular blogging site “Tumblr.”

According to CNN, rumors about the purchase have been circulating since May 16th. This deal will reportedly assist Yahoo in breaking into the younger, “hip” online user base that is housed at Tumblr.

Yahoo’s CEO, Melissa Mayer, explained that the two companies will collaborate to create advertising opportunities and to form a large media network. “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,” Mayer explained in a statement.

This venture is Mayer’s latest attempt to “save” Yahoo and turn the company around, according to ABC News. Mayer has been the CEO of Yahoo for less than a year after previously spending over ten years at Google. So far, Mayer has also designed a new homepage, re-created Yahoo Mail, and added changes to Flickr, the company’s photo-sharing service. The Yahoo Board and Mayer are hoping that Tumblr holds the key to making Yahoo a technology giant again.

According to ABC News, analysts and reports are saying that Tumblr will also be bringing a “cool” appeal to Yahoo. Brian Soils, a principal analyst at Altimeter Group, explained that “For all intents and purposes, Yahoo as a media brand skews toward older demographics. Tumblr is ridiculously strong in terms of engagement among Millennials and, to some extent, Generation Y. The trick for Marissa and co. is to do so without diluting the Tumblr secret sauce while drafting enough of the Tumblr brand to make Yahoo cool again.”

Although Mayer is enthusiastic about the deal, Yahoo is being met with a less-than-pleased response from some Tumblr users and fans. Many people are concerned that the site could be taken over by advertisements or even changed completely, CNN reported.

However, both Mayer and Tumblr CEO and founder David Karp have been working to ease these fears. Mayer wrote on her own Tumblr blog that “We promise not to screw it up. Tumblr is incredibly special and has a great thing going. We will operate Tumblr independently.” She also repeated in a company statement that Yahoo intends to keep Tumblr as an independently operated business with Karp remaining on board.

On Tumblr’s official Tumblr News blog, Karp also reassured users. “We’re not turning purple. Our headquarters isn’t moving. Our team isn’t changing. Our roadmap isn’t changing. And our mission-to empower creators to make their best work and get it in front of the audience they deserve-certainly isn’t changing.”