Yahoo CEO Details Reasons Behind $1.1bn Tumblr Acquisition, Promises Not To Screw It Up
Ever since Marissa Mayer become its Chief Executive Officer, Yahoo! has been gobbling up smaller companies left, right and center. Tumblr.com – the uber popular microblogging service – is its latest and greatest acquisition with a whopping $1.1 billion price tag, all paid in cash. Earlier today, Mayer published a blog post discussing why Yahoo! decided to acquire Tumblr.
Tumblr’s extraordinary traffic figures – 300 million monthly unique visitors half of which come through their mobile apps, and 120,000 new signups every day – are of course the leading reason behind the billion dollar acquisition. Tumblr has a diverse user-base which will significantly boost Yahoo!’s overall audience. Mayer estimates that Yahoo! and Tumblr together will serve more than a billion visitors every month.
Going forward, Mayer has promised “not to screw it up”. Tumblr will get Yahoo!’s personalization technology and search infrastructure; Yahoo will add Tumblr’s audience and blog posts to its own media network. Tumblr will be operated independently, similar to how Instagram is working independently under Facebook.
We certainly hope Marissa Mayer keeps her promise, as Yahoo! has a bit of a habit of acquiring talented teams with popular products, and failing miserably with them. Flickr, Broadcast.com and GeoCities come to mind.