For a company that was founded in 2007 that hasn’t reported a single profit and doesn’t house a billion users Tumblr and its founder as well as current CEO David Karp self-taught programmer who left high school for home schooling, being bought by Yahoo is a solid anything is possible story for kids.
The company was bought earlier on in the week for $1.1 billion in cash so was the deal worth it? or was it another risky bet like when Yahoo bought Geocities which cost them $3 billion just to be shut down in 2009.
The centre of everything is Tumblr’s tools, social span and its Dashboard which is very important key element of discovery and potentially could be where ads can be placed in the future, but don’t worry the company won’t just disappear into Yahoo as they’ve said in a statement “Per the agreement and our promise not to screw it up, Tumblr will be independently operated as a separate business,”
The person that spearheaded this purchase is Yahoo CEO Marisa Mayer who’s taking the company in the right direction since she’s been CEO, Tumblr is popular among the younger generation which is key as this will allow Yahoo to introduce target specific ads and drive traffic into its site and Tumblr.
The only problem is the amount of adult content that Tumblr has as data before showed that 90% of its blogs of +100 million contained adult content, but new data from Quantcast shows that the percentage is now sitting at a mere 5% which is a good thing.
Tumblr isn’t a money driven company as it just provides tools for people to share text and images online and spread it across to other social platforms, how and when will the Tumblr purchase pay off is yet to be seen but we’ll sure be keeping an eye on Tumblr and the comeback of Yahoo.