Tuesday, May 28, 2013

Inside the Deal:Should Yahoo Buy Tumblr

Yahoo is purchasing blog site Tumblr for 1.1 billion dollars.Should it be spending so much on a site that has made so little money?Tumblr is a platform that has revenue of only 13 million dollars.Is Yahoo crazy or something?
CNBC's Jim Cramer says Yahoo is buying relevance.Tumblr has the demographic 18-34,which Yahoo lacks now.Yahoo could use anything that shows it has a pulse.It's TV of the future.Budweiser,McDonalds and Procter and Gamble will advertise on Tumblr.
This is about mobile.They're getting an immediate plug-in into mobile,as 50% of Tumblr connections are on mobile.It gives Yahoo a massive footprint.It's a very smart move.
This is a new generation of leaders at Yahoo.You can't look at the past;this makes a lot of sense,according to Chris Cunningham,CEO of Appsavvy.We're talking about Yahoo.I predict a richer,more appropriate,user-centric vision.
Tumblr is not a tradtitional tech company,but a user compant that has a huge adult audience.Tumblr is cool,it's edgy.It makes sense.They're gonna work on the inappropriate content.Tumblr is a phenomenal company.Their road map,their vision stays on tap.
Yahoo CEO Marissa Mayer said we have a global audience of more than a billion people with the addition of Tumblr.They get 24 billion user minutes a month.As we promised,we are not gonna screw this up.
Yahoo is increasing its New York presence,leasing four floors of the former New York Times headquarters building.

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