Boston, MA 06/26/2013 (wallstreetpr) – Yahoo! Inc. (NASDAQ:YHOO) had recently announced that it has completed its acquisition of Tumblr.
Tumblr is said to be one of the fastest growing media networks in the world. It has huge popularity among curators, creators and audiences of all ages, which brings in significant market share for Yahoo. Such a combination is expected to make Yahoo’s audience to grow by more than one billion monthly visitors.
As per Yahoo CEO Marissa Mayer, the $1.1 billion deal will be a part of enhancing the growth story of Yahoo, whose benefits shall be reaped in 2014.
The deal is seen to be beneficial for both companies, as Tumblr can use Yahoo’s unique personalization technology and search infrastructure to help its users search bloggers, creators, and the content they like to view. With more than 50 billion blog posts (and 75 million being added each day), Tumblr can bring complementary content to Yahoo’s media network and search experience. In exchange, yahoo can help Tumblr to create limitless advertising opportunities and thereby enhance user experience.
It is also to be noted that such an arrangement will have no direct impact on the operations of Tumblr, as Tumblr will continue to be separately operated and the product, its service and brand will continue to be developed separately by the Tumblr team. The current CEO, David Karp will continue to be its CEO.
However, if one is to look through the deal, there might be some changes behind the scene, which maybe discovery or search or pulling of some of Tumblr’s content into Yahoo’s core properties.
Such deal is now being compared to Google’s 2006 YouTube acquisition. At that time, YouTube had practically no revenue, but is now one of the company’s most valuable brands. Tumblr offers a platform that enables users to create and share original content. However, Tumblr is more about animations, images and texts, which generally draws lower premium from advertisers as compared to video.
