Yahoo Plans To Acquire Tumblr in 1.1 Billion Dollar Buy
Tumblr, one of the world’s premiere blogging platforms is set to be acquired by Yahoo one of the world’s first internet heavy hitters.
The deal will be completed by the second half of the year and will be an all cash transaction. Twenty-six-year-old founder David Karp, will remain on as the chief executive for four more years as per the deal which alleviates some of the concern users are experiencing that the days of GIF Tumblrs will be replaced with purple branding and banner ads (without users permission). Marissa Mayer has stated that Tumblr will remain largely independent however they are looking to move the headquarters to New York.
The billion-dollar buyout is not the fist for today’s social hungry market but the ROI is TBD. Yahoo is pretty confident they won’t suffer buyer’s remorse, as Tumblr will nearly double their audience and grow traffic by 20. Standing alone, Tumblr boats more than 300 million monthly unique visitors and 120,000 signups every day, 900 posts a second and 24 billion minutes spent on the site every month. Mobile users on Tumblr average seven sessions a day.
Unsurprisingly, Tumblr users are against the move but this doesn’t necessarily mean there will be a negative impact on the traffic or usage of the network as evidenced by the Facebook buy out of Instagram etc. However, WordPress, a Tumblr competitors, claims that the hourly number of posts being imported into WordPress from Tumblr jumped to 72,000, from around 400-600 posts per hour, in the wake of the Yahoo buyout! On the flip side of the coin, others like Fred Wilson, one of the first investors in Tumblr believes Yahoo’s investment will propel Tumblr to become more lucrative and powerful a la Facebook and Twitter. General consensus is that this is exciting news welcomed by advertisers, while end users are annoyed and repeatedly typing “I can’t even” and “SMH”.
What do you think the future of Tumblr holds? Sound off in the comments!