Will Tumblr Be Yahoo’s Big-Splash Acquisition?

tumblr logoYahoo is trying to buy social blogging platform Tumblr for $1 billion (or more). That would represent about a third of the company’s existing cash — though it stands to make more cash from its remaining Alibaba stake.

It’s a big bet and the type of high-impact acquisition that Marissa Mayer has wanted to make since becoming CEO of Yahoo. Why buy Tumblr? The reasons are almost self-evident.

Yahoo is a media/content company whose primary revenue source is display advertising. Tumblr is a massive user-generated content machine with a huge audience and page views (read: inventory). It’s a top 50 comScore property and has lots of SEO value.

According to Tumblr and comScore:

  • There are 45 billion posts and over 100 million blogs hosted by Tumblr
  • There were 29 million Tumblr uniques in March
  • There were nearly 7 billion page views in march
  • 47 percent of Tumblr users are in the coveted 18 – 34 year old age category
  • Roughly 35 percent of Tumblr uniques earn over $100K

Tumblr also has significant mobile usage.

GigaOm’s Om Malik suggests that Facebook might try and swoop in to spoil the party. Facebook, too, needs younger users, hence its Instagram acquisition.

Talks could also break down, as happened in the recent case of video site Daily Motion, which Yahoo was also trying to buy. However, the failure of that acquisition was due to the intervention of the French government.

Beyond gaining a huge (probably new) audience and massive page views, buying Tumblr would also represent something that has long eluded Yahoo: the capture of a significant social-media property.

Postscript by Barry Schwartz: Yahoo has sent out an invitation to the press to attend a special press event this Monday. The event is being held in New York City at 5PM EDT and the rumors around this event are to announce the rumored Tumblr acquisition. The invite read, “Join us as we share something special.”

Related Topics: Channel: Social Media Marketing | Features & Analysis | Top News | Tumblr | Yahoo | Yahoo: Business Issues

Sponsored


About The Author: is a Contributing Editor at Search Engine Land. He writes a personal blog Screenwerk, about SoLoMo issues and connecting the dots between online and offline. He also posts at Internet2Go, which is focused on the mobile Internet. Follow him @gsterling.

Connect with the author via: Email | Twitter | Google+ | LinkedIn



Marketing Day:

Get the top marketing stories daily!  

Share

Other ways to share:
 

Read before commenting! We welcome constructive comments and allow any that meet our common sense criteria. This means being respectful and polite to others. It means providing helpful information that contributes to a story or discussion. It means leaving links only that substantially add further to a discussion. Comments using foul language, being disrespectful to others or otherwise violating what we believe are common sense standards of discussion will be deleted. You can read more about our comments policy here.

Comments are closed.

Get Our News, Everywhere!

Daily Email:

Follow Marketing Land on Twitter @marketingland Like Marketing Land on Facebook Follow Marketing Land on Google+ Subscribe to Our Feed! Join our LinkedIn Group Check out our Tumblr! See us on Pinterest

 
 

Click to watch SMX conference video

Join us at one of our SMX or MarTech events:

United States

Europe

Australia & China

Learn more about: SMX | MarTech


Free Daily Marketing News!

Marketing Day is a once-per-day newsletter update - sign up below and get the news delivered to you!