Yahoo has undergone some massive changes in recent years and, in the past six months especially, they have also undergone a rigorous and extensive acquisition programme but their proposed purchase of Tumblr eclipses all else. It has been announced that the Yahoo board has OKed the $1.1bn cash purchase of microblogging platform Tumblr – clearly setting the company’s stall out as a social and mobile Internet technology company.
Tumblr is a mobile blogging platform, a similar ilk to Twitter, but it is also a social network that is more akin to Facebook in its features and its following. You can create short form blog posts, add videos and images, and you can share them with friends, family, and colleagues. It is also extremely popular and, according to Yahoo during their announcement to Wall Street, it has 300m monthly unique visitors, attracts 120,000 new signups every day, and 24bn minutes are spent on the site every single month.
As well as a burgeoning membership figures, it also has a user base that is heavily mobile dependent. Around half of the site’s users access Tumblr using the mobile app. Yahoo chief executive Marissa Mayer said that the site that the move had the potential to increase Yahoo’s audience by 50% and to increase traffic by 20%. In an official release, Mayer went on to say that they would not “screw up” Tumblr; a sentiment that was largely shared by Tumblr chief David Karp. Karp will stay on as chief executive and will net approximately $220m as part of the deal.