Yahoo’s Acquisition of Tumblr Gets Negative Reaction from Former Users

Yahoo’s Acquisition of Tumblr Gets Negative Reaction from Former’s Users

As blogging site, Tumblr, announced that it has already sealed the deal with Yahoo, many Tumblr users have moved their blogs to Matt Mullenweg’s WordPress. The rate was by the thousands per hour which prompted the blogosphere to say that there was a mass exodus of Tumblr users going to WordPress. While the mass deflection of Tumblr bloggers is deemed as an emotional reaction of users of the site only, WordPress developer Mullenweg says it will not affect Tumblr in the long term. The deal between the two companies was announced on May 20th and when Yahoo finally completed its acquisition of the website, it said that it will aim to get a monthly audience of one billion.

Paying $1.1 billion, Yahoo’s CEO Marissa Mayer promised that the blogging site will still have its independence and David Karp will still be Tumblr’s CEO. According to analysts, it is the most ambitious move of Mayer yet in her bid to turn around how people see Yahoo. However, the perception of the internet giant is still the same because Yahoo’s previous acquisitions proved to be devastating for the smaller companies that it acquired. The most prominent examples include Geocities bought by the company in 1999. Geocities later shut down its service after 10 years. Other examples include Flickr and Delicio.us.

Mayer said that Yahoo will not screw it up this time but this did not stop the blogosphere from tagging Tumblr as the new Geocities. Tumblr is backed by the same person who backed Geocities before it was acquired by Yahoo, and much like Geocities in 1999, Tumblr has just started monetizing the traffic that it gets. According to sources, Tumblr recently made $800 million making the blogging site one of the biggest private companies online. The mass exodus of bloggers on Tumblr also happened to Geocities in 1999. Former Geocities users deflected to other sites instead of staying with the company when the Yahoo deal was done. However, many are still hopeful that Tumblr will not dwindle as Geocities did.Yahoo Buys Tumblr

It must be remembered that the acquisition came in just in time because Tumblr has been having management problems, making the acquisition a saving grace for the blogging site. Whatever lies ahead, Mayer is quick to ensure that as promised, the company will operate independently. But Forbes magazine noted that the Yahoo and Tumblr merger follows the same blueprint as that of Facebook and Instagram and that Yahoo is hoping for the same magic as what happened to the latter.

Note that it’s not just Tumblr that Yahoo acquired. The internet giant has also bought a number of startup companies this year alone. This includes the conference calling company Rondee, the social bookmarking and recommendations website Stamped, Ghostbird, MileWise, Jybe, and Lokie Studios among others. While the CEO’s move is for Yahoo to be more innovative, knitting together not only Tumblr and Yahoo but the smaller startups that it acquired this year will be quite challenging.

Source: http://www.techhive.com/article/2039246/its-official-yahoo-will-buy-tumblr-for-1-1-billion.html
Source: http://www.dailytech.com/Yahoo+Acquires+Tumblr+for+11+Billion/article31582.htm
Source: http://www.macobserver.com/tmo/article/yahoo-buys-tumblr-in-1.1b-deal

 

 

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