21 May 2013

Yahoo! Bought Tumblr for $1.1 Billion: What will happen now to tumblr?

image from www.ign.com  
Yahoo! as the Internet’s original media network bought Tumblr the Internet’s fastest-growing media frenzy in the amount of $1.1 billion last May 21, 2013. Yahoo stated that “per agreement and our promise not to screw it up”, Tumblr would be an independent operated business. Mr.  David Karp, Tumblr’s 26 year old founder is now a billionaire and will remain chief executive.

image from www.technobuffalo.com 
Did you know that David Karp was born and raised in New York City and was actually a dropout from school at the young age of 15.Later, he begun homeschooling instead. Karp first started his own software consulting company named Davidville, with Computer Engineer Macro Arment. In February 2007, it was remarkable date, they launched Tumblr. As the same time, he was included in the list as one of the top 35 innovators in the world under the age of 35 having a networth of $200 million according to Forbes

What is Tumblr?
Tumblr is a microblogging platform and a social networking service. Users post multimedia contents and other short blog that enables to follow fellow user blogs and can be customized privately and publicly.  Monthly, Tumblr have approximately more than 300 million unique visitors with 120,000 sign ups, making it one of the fastest growing media site in the world. 

It is among the 20 most visited websites in the US and generated unyielding user growth last year and counting.  This facts and remarkable popularity engagement among users in ages mostly on youngsters will eventually bring new users to Yahoo network. The combination of the two networks anticipates growth to Yahoo by 50 percent giving it more than a billion monthly visitors and a traffic increase by 20 percent.

Meet CEO of Yahoo!
Ms. Marissa Mayer, the new chief executive officer(CEO) of Yahoo! who was previously a long-time executive and key spokesperson for Google, made her first big step towards regaining the competitive status of Yahoo on the web after the rise of Facebook and Google. This agreement offers opportunities to both ends and will benefit the merging.  Yahoo!’s personalization technology and search infrastructures will help Tumblr users discover blog contents, creators , images and other stuff they’ll find interest with. As to Tumblr’s side, it will bring 50 billion blog posts to Yahoo!’s media network and search experiences.  Making the best out of this merger will create advertising opportunities and in the long run goal perceived will be reached.

This big leap and a risky decision from Yahoo! Would make or break the improvement and increase of profit they needed to sustain the website, keeping it intact and competitive in the world of media. Analyst Zachary Reiss-Davis at tech research firm Forrester warned a might not be a profitable service at the moment since yahoo tried to attract young users adding it to its slow growing areas such as email and search. He sites the focused of Yahoo on user growth and making money from the service without alienating its users is difficult.

What this may lead into will unveil itself in time. But knowing both companies, they will not gamble into something they’re not sure of. As to the user side of Tumblr and Yahoo, definitely will be a new experience and a much improved environment to look forward, for now let’s Yahoo! to Tumblr.

Bought for $1.1 Billion
Yahoo! Bought Tumblr for $1.1 Billion: What will happen now to tumblr? In the blog staff tumblr post, David said, they will not turn into purple, and he stated that the combined Yahoo! and Tumblr would simply gets better and faster. The staff of tumblr, building, team, mission and roadmap WILL not changed.

Does Yahoo! puts ads on Tumblr now? Is it beneficial to publishers to earn money from ads then? What's your idea about this?

Sources : ft.comnewsfeed.time.comallthingsd.com
Images Courtesy for the Respected owners

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