Yahoo Buys Tumblr for $1.1 Billion

by May 20, 2013Website Design

Yahoo Buys Tumblr for $1.1 Billion

Rumors of the deal started Thursday, May 17 when Tumblr CEO, David Karp, asked his Twitter followers “Yay or Nay?” in regards to the then hypothetical deal. Tumblr users quickly responded with a resounding “no” and even started a petition against the deal. At first Karp took part in the panic until finally issuing an ultimatum just prior to the deal Monday morning via Twitter: “Pick one: Tumblr owned by Yahoo OR bye bye Tumblr.”

Therefore the deal went through and Karp assured users that little will change on Tumblr; he wrote in a blog post, “We’re not turning purple.” Tumblr’s headquarters won’t move; the team won’t change; and their mission won’t be compromised. Marissa Mayer, CEO of Yahoo!, promised “not to screw it up.”

This deal welcomes Yahoo to their competitors’ arena, Google and Facebook namely, who both invested into fast-growing social media sites, Youtube and Instagram respectively. Yahoo followed through to gain a mobile presence and cater to a younger crowd; Tumblr agreed in hopes to raise revenue.

However it is the increased revenue that’s causing the conflict. Tumblr creates a community for creators to produce their best work and present to the audience they deserve. Users fear that additional advertising will clutter Tumblr’s current, clean interface. Mayer said their strategy is to create ads that are “as good as the content” and simply “let Tumblr be Tumblr.”

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