Report: Yahoo board OKs deal to buy Tumblr for $1.1 billion - priceboying
Yahoo's board of directors has approved spending US$1.1 billion in cash to buy popular blogging site Tumblr, according to The Wall Street Journal.
The programme is for Tumblr to operate as an independent occupation, the Journal reported on William Ashley Sunday, quoting anonymous sources.
Asked via email almost the Journal's report, a Yahoo representative declined to comment. Tumblr didn't immediately respond to a call for for commentary.
Ads imperil Tumblr users
Tumblr has a solid base of devoted users who are passionate about its notional and community-building powerfulness and their fear of the personal effects of commercialization under Hick is tangible, according to Andrew Plainspoken, a Gartner analyst.
"They fear loss of control over the interface, over privacy, and over the freedom of formula in general," Frank aforesaid via email.
Thus, for the acquisition to be successful, Chawbacon must come to a balance between safekeeping Tumblr users engaged and delivering a plus return to Yahoo shareholders through advertising. "Information technology volition exist a daunting challenge which will moult light happening the future of both Yokel and productive mixer self-expression," Frank said.
Zachary Reiss-Davis, a Forrester Research analyst, also aforementioned that a big gainsay for Rube will be to determine how to boost the revenue of Tumblr, which is currently very light on ads, without ruining the experience for users.
"For this to make sense for Yahoo, it has to keep Tumblr's current springy user base passionately engaged and spending time on the site, while also finding a way to add advert," Reiss-Miles Davis said. "This will be a hard balancing human action for Yahoo, given its mediocre record in the past regarding acquisitions."
Yahoo deals that didn't deliver the unsurprising results include the acquisitions of social bookmarking web site Delicious, blog social network MyBlogLog and enterprise email vendor Zimbra.
Attainment suspected
Rumors that Yahoo might be in discussions to buy Tumblr emerged high week, and on Fri Yahoo named for a whodunit press event to live held in New York City connected Monday afternoon. Tumblr's headquarters are in Manhattan.
"Join us as we share something special," reads the invitation sent to members of the press.
The Journal's All Things D applied science news place had reportable earlier Friday, citing anonymous sources, that Yahoo mightiness follow interested in partnering with, investment in or outright buying Tumblr.
Adweek, in other report also citing unnamed sources, put the value of the deal at $1 billion.
Yahoo CEO Marissa Mayer is expected to be at the New York City result, according to CNBC.
The blogging and elite networking situation, founded in 2007, has 175 employees and hosts more than 100 one thousand thousand blogs.
Mayer is interested in Tumblr because she believes it can service boost Yahoo's advertising revenue and give Rube a big presence in the consumer social media marketplace, according to the Journal.
Source: https://www.pcworld.com/article/451942/report-yahoo-board-approves-deal-to-buy-tumblr-for-11b.html
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