05 21 13

A big gamble or a savvy investment

A Flashy Bet for Yahoo on a Shift in Social Media, New York Times writer, Jenna Wortham, looks at Yahoo’s big acquisition of Tumblr, the fast-growing visual blogging platform/site. Yahoo president and CEO Marissa Mayer is obviously looking to quickly expand the site’s reach, enabling additional ad revenues while continuing to shake up the sleepy search giant. As the piece points out, people do seem to be tiring of Facebook and seeking new and better ways to create more meaningful, personal content to share. Enter Tumblr, but don’t count on a quick slam dunk here. Clash of corporate cultures are more than likely for sure. Effectively integrating advertising into a huge ad-free environment certainly presents another sizable challenge. One can easily look at numerous failures and few successes with these types of acquisitions, but Mayer is definitely counting on this being more like Facebook’s YouTube purchase vs. Yahoo’s $3.57 billion GeoCities fiasco back in ’99. Looks like it could easily go either way. We’ll just have to wait to see how the cookie tumbles…

Previous