Tuesday, May 21, 2013

Yahoo promises it 'won't screw up' its Tumblr acquisition

As expected, on Monday morning Yahoo and Tumblr announced that the Internet giant had acquired the six-year old New York blogging service for “approximately $1.1 billion, substantially all of which will be paid in cash " according to Yahoo's press release.

There is another interesting tidbit from the press release, one that can't be missed by anyone watching the mistakes and miscues in the once high-flying company's past. The press release says it in bright bold letters (all right, not really bright and bold, but it should be): Yahoo promised "not to screw it up."

Tumblr founder David Karp will remain as Tumblr’s CEO. According to the press release, Tumblr will be run as a separate entity, and "the product, service and brand will continue to be defined and developed separately with the same Tumblr irreverence, wit, and commitment to empower creators."

Yahoo CEO Marissa Mayer even took to Tumblr to post about the acquisition. In case you were wondering, it appears to be her only post on a newly created blog. Once again, she promised that Yahoo would "not screw it up."

The post included an animated GIF with the rotating text:
Now Panic and Freak Out
Keep Calm and Carry On
Statistically, as Mayer noted:
  • Tumblr hosts 105 million different blogs
  • It has over 300 million monthly unique visitors
  • It sees over 120,000 signups daily
  • Tumblr sees 900 posts per second
  • Users spend 24 billion minutes onsite monthly
  • More than half of Tumblr’s users are using the mobile app; those users do an average of seven sessions daily
Yahoo hopes that the Tumblr acquisition will increase its global popularity. While Yahoo sees about 700 million unique visitors per month, the bulk of them, and the revenue from search and display ads, come from the Americas. Mayer said that the combination of Tumblr and Yahoo "could" (the operative word being could) grow Yahoo’s audience "by 50 percent to more than a billion visitors monthly, and could grow traffic by approximately 20 percent."

It's true, in fact, that with Tumblr in the fold, Yahoo has well over a billion users, since there is little overlap between the two sites.

Karp’s blog post on the acquisition was, as Mayer said, a little more irreverent -- in keeping with the site's normal style. That can be seen in his sign-off:
F*ck yeah,
And no, he didn't censor that one word.

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