Looks like Yahoo wants a serious piece of what Tumblr’s got goin’ on. According to a report from All Things D, the young and hip blogging service could be purchased by Yahoo for as much as $1 billion.
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Yahoo has had its fair share of problems to deal with over the past few years, and maintaining its “cool” factor has been a big one. The struggling search engine and web portal site hasn’t quite been able to cracke the code when it comes to the youth demographic, so Tumblr’s loyal 18 to 24 year-old userbase looks like an attractive buy at the moment.
Tumblr, however, has had its own set up problems to deal with. The blogging service gets a big chunk of its traffic from the hoards of stolen, copyright-violated content and porn that its users continue to post. And even though advertisements were launched on its mobile apps just last month, a solid revenue generation strategy that actually works has yet to be developed.
But who knows, maybe Yahoo’s much more established advertising team could give Tumblr the push it really needs to make more money, all the while strengthening Yahoo’s ability to target and hold on to a larger chunk of the youth demographic. If the acquisition rumors live up to the hype and a $1-billion deal is eventually reached, it would be comparable to the Facebook-Tumblr acquisition that was made last year.
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Most seasoned Internet users can easily recognize that Tumblr is basically the complete opposite of what Yahoo is right now, but Yahoo apparently really, really wants it, and the company is ready to step up its startup buying game to get just what it wants.
We’ll be keeping an eye out on this one. Stay tuned, friends.
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