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Yahoo in talks with Tumblr: report

Alyssa Mcdonald | May 17, 2013

Yahoo in talks with Tumblr: report
Yahoo CEO Marissa Mayer has reportedly taken an interest in Tumblr since her time as an executive at Google, and as Yahoo head has met with Tumblr staff, including CEO David Karp, on several occasions. Photo: Paul Zimmerman

Yahoo may be considering a deal with Tumblr, according to AllThingsD, which reports that sources described talks between the two companies as serious and suggested "a strategic alliance and investment in, or outright buy of" the blogging platform could be on the table.

Yahoo CEO Marissa Mayer has reportedly taken an interest in the company since her time as an executive at Google, and as Yahoo head has met with Tumblr staff, including CEO David Karp, on several occasions.

Ms Mayer, who has been CEO since July, is working to revitalise the company and has said that better online products and new mobile services are key to the company's turnaround.

Tumblr - which comScore says had 117 million visitors in April 2012 - would bring Yahoo into contact with the large, young audience it hopes to recapture. Mr Karp told Forbes in January that Tumblr"finished 2012 with $13 million in revenue; the hope in this "leap" year is that it'll get to $100 million."The company recently began running advertising on its pages.

In April, Yahoo reported first-quarter revenue below analysts' expectations. Earnings rose to $US390 million in the period compared with $286 million in the year-earlier period, but revenue from display ads fell 11 per cent year on year.

Neither Yahoo nor Tumblr have commented on the report, and if talks between the companies have taken place they might still lead nowhere. But Tumblr is a good match for Ms Mayer's interests, a source told AllThingsD: "aesthetics software technology and fast-growing".

 


 

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