Rumor: Yahoo Allegedly Acquiring Tumblr
May 18, 2013 | 1:30 pm
By Christina Jones
Rumors are swirling that Yahoo is in talks to acquire Tumblr. Apparently Ken Goldman, Yahoo’s CFO, explained the Internet giant’s concern for its aging users. In an attempt to appeal to the 18-24 year-old-demographic, they’re seriously considering bring Tumblr on board.
“One of our challenges is we have an aging demographic,” explained Goldman at JP Morgan’s Global Technology conference. “Part of it is going to be just visibility again in making ourselves cool, which we got away from for a couple of years.”
Tumblr is certainly gaining momentum in popularity, traffic and revenue. Just last month, comScore reported the young company received 117 million visitors worldwide, with 37 million of U.S. traffic. Tumblr currently manages nearly 108 million blogs and 51 billion posts. It has recently tried its hand at monetization with promoting branded Tumblrs on users’ dashboards.
As a result, the company generated $13 million in revenue last year, and is on track to generate an estimated $100 million this year. Tumblr is currently valued at $800 million, and Yahoo’s Marissa Mayer is willing to purchase the brand for at least $1 billion. Yahoo is no stranger to online advertising so this could prove a mutually beneficial partnership.
What do you think of the possible acquisition? Share with us in the comments!