Yahoo paid $1.1 billion for Tumblr. How’s it going to make its money back?
A bunch of ways, Marissa Mayer explained on a conference call today. But if you’re a Tumblr user who was hoping that those ways didn’t involve putting more ads on…
Marissa (Mayer, Yahoo CEO) walked me through exactly what that would look like, what that could look like, and she showed me an opportunity for Tumblr to stay an independent company, effort and team. Now, we can keep pursuing this mission and vision for our product with all this new wind behind our sails.
… It’s true that we don’t have the same demographic information that a Facebook does and we likely won’t. But we have one of the most robust networks of content and the most highly engaged audience of humans that comes there hungry for that content. What that means is, creative advertisers who make great ads that blend in with that content have the opportunity to tell a story that resonates with people in an incredibly human way that no level of targeting is going to be able to replicate.
DAVID KARP, founder of Tumblr, post-Yahoo acquisition.
I AM A HIGHLY ENGAGED HUMAN.
Yahoo has officially announced that it will acquire Tumblr in a $1.1 billion cash deal expected to close in the second half of the year, and will keep Tumblr’s David Karp on as CEO. “Per the agreement and our promise not to screw it up,” Yahoo says in its press release, “Tumblr will be independently operated as a separate business.” In one of its first acts of business, Yahoo has moved its official blog to yahoo.tumblr.com.