Yahoo plus tumblr equals…Yumblr?

Molly Wood May 20, 2013
HTML EMBED:
COPY

Yahoo plus tumblr equals…Yumblr?

Molly Wood May 20, 2013
HTML EMBED:
COPY

It’s been in the pipeline for several weeks. But now it looks like a Yahoo purchase of the blogging website Tumblr is happening. Yahoo’s board agreed on Sunday to pony up for Instagram-sized pricetag of $1.1 billion for Tumblr and its 26-year-old founder David Karp. The buy could offer an influx of advertising and business savvy.

AllThingsD first reported the deal. Kara Swisher, co-founding editor of AllThingsD, says this is a big part of the mission for Yahoo’s new CEO Marissa Mayer — a mission to make the aging Internet company cool again. 

“She has been trying to regenerate it by doing a series of superficial things like free food and free iPhones,” says Swisher. “But she really needs to fundamentally change the way people think of Yahoo.”

Some worry Yahoo’s Tumblr purchase will endanger the blog site’s youthful, free-form vibe. Though Swisher says as long as the product quality doesn’t change, the audience is likely to stay satisfied.

“Nobody has run from Instagram because Facebook owns it. People like Instagram because it’s a great product,” says Swisher. “They would be smart to leave [Tumblr] alone like Facebook has done with Instagram.”

Click on the audio player above to hear more.

There’s a lot happening in the world.  Through it all, Marketplace is here for you. 

You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible. 

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.  

Need some Econ 101?

Our new Marketplace Crash Course is here to help. Sign-up for free, learn at your own pace.