[Story via CNN Money] In hopes to tap into the younger, active online user base, Yahoo announced a $1.1 billion deal for blogging site Tublr on Monday morning, and they promise not to screw it up! CEO and founder of Tumblr, David Karp says that he has resisted the use of traditional display advertising on Tumblr to this point, but many fans of Tumblr raise question of whether the site will become cluttered with yahoo ads, profiting yahoo billions each year. Serving the 300 million monthly unique visitors and 120,000 sign-ups every day, with about 900 posts a second from Tumblr, many fans wouldn’t be surprised if things began to change soon.
[Photo Courtesy of National Journal]
According to CNN Money “To answer those worries, Yahoo said that Tumblr will be independently operated as a separate business with Karp staying on as CEO. Yahoo CEO Marissa Mayer posted her own Tumblr post to try to assure fans of the site they need not panic. In a call with investors and analysts Monday, Mayer referred to the deal as a “game changer” for Yahoo. She said there will be no Yahoo branding on Tumblr”.
Yahoo’s stock is up 33.5% this year already, and many people believe that what Mayer is doing for the company is reinvigorating it, making it cool again, the tumblr deal is something that clearly fits. Some of the questions on many people’s minds are: Will Tumblr actually add to Yahoo’s profits and revenues in a meaningful way, and will they become cool again? These questions remain to be seen.
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