As I mentioned on Saturday on Facebook, they were both in negotiations and Tumblr had rejected a similar offer, but a few hours ago has confirmed the news, Tumblr acquisition by Yahoo has already been confirmed.
The most remarkable landmark since entering Marissa Mayer as CEO of Yahoo that as I said in this blog, since her entry into the company, she has among its objectives to position the side of the user-generated content, and the purchase of DailyMotion finally could not materialize, after 10 acquisitions since joining, Tumblr has been the next target.
Tumblr is a booming platform since he was born in 2007. Halfway between blogging and microblogging, with over 100 million blogs, with a loyal audience of over 67 million unique users, 18 from Mobile, took the 3rd place in the U.S. in mobile Quantcast ranking, which published more than 50 million post and over 16 billion page views to which Yahoo can certainly take advantage.
Although as discussed, in 2012 only reached 13 million profit, and this year was expected to exceed 100 million. This purchase is definitely a great opportunity for both companies. And though from the outside you can see as a bubble, because it reminds Instagram purchase by Facebook, by billions too, I think we have to take into account more than the actual price, to understand these figures.
Yahoo is playing its future, and with actions as aggressive as this, shows desperation, yet their minds to move forward collecting talent and big projects that form a clearly defined strategy for the future.
Tumblr in the hands of Yahoo multiply its value, thanks to the ability to sell advertising giant. I do not know if it will return that amount in a short time, but of course it will. Not to mention Tumblr or alternative models explored to date, and involving nearly 50 million annual revenue to competitors like Automattic’s WordPress as its freemium model to target domains, statistics, backups, etc..
What is clear is that Yahoo is not just about profit, but for the future and long-term strategy, in UGC as mobile strategy.
In terms of valuation, by investment inflows, Tumblr already had a valuation of $ 800 million, so the amount received is not as far-fetched.
Also, apparently had some doubts Tumblr future, if it could itself grow as needed, and thus has a very bright future. Although voices are heard to the contrary, I believe that Yahoo’s new direction will leave behind the mismanagement of the companies bought so far, and start to make things better.
By the way social networks and especially the contents are the big winner of this operation recognized for their importance and crucial part of any big business.