May 20, 2013Published by: Drew Benvie

What is Tumblr and why did Yahoo buy it for one billion dollars?


Tumblr today announced that it sold itself to Yahoo for $1.1 billion in cash. This is one of the biggest social network acquisitions we have ever seen, considering the cash payout and the fact that two very very different web companies are coming together at a critical time in the social web.

Here is a roundup of some of the better analysis we have found on the deal and what it means for the way of the internet.

Is Tumblr the new Geocities: Forbes takes a look at when Yahoo bought Geocities back in for $3.5 billion in 1999, the similarities and the lessons to be learned. One interesting point to note is that Fred Wilson the famous web venture capitalist is involved in both deals.

The real reason Tumblr really sold to Yahoo: Buzzfeed looks at how Yahoo is trying to appeal to a lost generation to whom Yahoo means absolutely nothing. Tumblr's largest user demographic is 18-24 year olds.

In Marissa's own words: The former Google big-shot and now Yahoo CEO explains in her own words on her blog what the deal means. Her blog is becoming the defacto place that news sources link to for Yahoo news, which is really interesting. For this post she uses phrases like "we promise not to screw it up" and "we will operate Tumblr independently".

The new New York tech scene: The Wall St Journal, as you would expect, looks at the importance of New York as a new web and tech hub. It's a very exciting place to be working from that's for sure. Business Insider also adds some analysis here.

Why Yahoo and Tumblr makes sense: Reuters' Felix Salmon, a man never off the mark with his media and digital commentary, puts forward a number of reasons why this is a good deal. This is my favourite: "Tumblr knows how to attract a new generation of users who want to create rather than just consume".

How Tumblr has the best and worst of the web: TechCrunch takes a look at the breadth of content on Tumblr, in particular the 'adult fare' which accounts for 11% of Tumblr's top content.

Copyright implications of the Yahoo Tumblr deal: Content theft news site Plagiarism Today looks at the intricacies of the copyright implications in the Tumblr deal and spells out what Tumblr users need to think about doing.

Fuck Yeah! Those are the concise words of David Karp, founder and big boss of Tumblr who blogged about the deal on the Tumblr staff blog. Well, wouldn't you be happy at making a billion dollars too?



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