Marissa Mayer,who is the CEO of Yahoo,want’s Yahoo to get more of a younger,hip-hop audience.Yahoo’s audince of 700 million is aging,and the 18-year olds have no compelling entry point to attract the younger crowd.
Speaking at the J.P. Morgan Global Technology conference this week,Yahoo CFO said “We’re working hard to get some of the younger folks,” and that Yahoo needs content that’s more relevant the 18- to 34-year-old bracket.”
Yahoo’s board of scary directors are having a meeting to consider its youth problems by putting down 1.1 billion for Tumblr,according to AllThingsD
Tumblr is a great buy for Yahoo,Tumblr has over 100 million users visitors(most of them,from my experience,youth),more than 90 million posts per day and over 50 million posts to date-according to the company.And,its social network(which would really help Yahoo) where users can follow other users and repost their posts!
Also,the amazing company would fit Yahoo’s goal of being the winner in mobile.Derek Gottfrid,Tumblr’s vice president,told BloomBerg that mobile usage of Tumblr has quadrupled over the past six months and is nearly equal to Web usage.
This would be the biggest bet for Mayer,who in her career has acquired 10 smaller companies,mostly for engineering.She’s also refreshed many of Yahoo’s core services,like mail and all that.But,do the kids care about that?No.
Naturally,there’s a big risk in this.This blogging platform will be competing with the two biggest names on the internet:Facebook and Twiter!The borad has a good reference for considering the downsides.
As a source for Yahoo to grow,Tumblr could become a profitable asset.Tumblr is valued at 1 billion dollars with 125 million in founding.However,generating money with Tumblr is a slog compared with personalized searching and all that jazz.
Simply bolting Tumblr to Yahoo wouldn’t do much to advance the buyer’s cause.Convincing Tumblr’s younger users to give up their daily habits,which don’t include Yahoo mail and all that,is no easy task.
We’ll find out on Monday weather the board members voted yes or no.The company sent aninvitation to the press Friday for a product event in New York for that day.
I hope you enjoyed this post.