Tumblr Buyout: 10 Reasons Why Yahoo Must Make It a Big Success

By Don Reisinger  |  Posted 2013-05-20 Print this article Print

5. Think of it like Google and YouTube

During that same discussion, Mayer said that she would attempt to operate Tumblr as Google has done with YouTube. What she essentially means is that Tumblr will be considered a separate entity capable of entering into its own deals with other companies and won’t be integrated into any Yahoo services. Tumblr posts, however, might come to the Yahoo homepage, similar to the way YouTube videos are readily available in Google Search.

6. The same Tumblr business plan

On the call, Mayer said that Tumblr will maintain the same business plan—save for revenue-generation—as it came into the deal with. That’s important. The last thing Tumblr users want is for Yahoo to mess up something that’s extremely important to them. Under the terms of the deal, the roadmap Tumblr had in place will not change.

7. It puts pressure on Google

This deal puts a bit of competitive pressure on Google so look for the search giant to make some kind of business move in response. After all, with Tumblr’s help, Yahoo now has well over 1 billion people globally that it can advertise to. Better yet, the company has a huge content engine that should only increase the viability of its advertising services. Google needs to head off any negative effects this deal might have on its ad business.

8. Mayer promises Yahoo won’t be, well, Yahoo

Mayer said something very interesting during her call with investors and analysts: Yahoo won’t act like it typically has when it’s made a major corporate acquisition. In the past, Yahoo made extremely poor decisions that ended up killing or greatly devaluing the services it has acquired. The company has a poor record of retaining key employees that made their acquisitions worth buying in the first place. Mayer has promised that won’t happen this time around. We shall see.

9. Does it excite Microsoft?

Let’s not forget that for the time being, Yahoo and Microsoft have an important partnership involving the Bing search engine that could greatly benefit the software giant. After all, Mayer herself said that the Tumblr acquisition should enhance her company’s search offering. That’s music to Microsoft’s ears, and something that can’t be overlooked as one evaluates this entire deal.

10. Twitter might come into the crosshairs

This might have also been good news for Twitter. Although it’s somewhat different from Tumblr, Twitter’s offering provides a simple way for people to share their quick thoughts with others online. If a company like Google is worried enough about Yahoo’s Tumblr buy, it might not be long before it tries to hold talks with Twitter and acquire the social network. Keep an eye on Twitter—it might just move for the right price.

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