Yahoo is buying Tumblr. Well, they’re in talks at least, with chances being that they will buy the website for 1.1 billion. Why does this matter though?
Yahoo is struggling, with only 4 billion cash on hand after selling various assets. It buying Tumblr could be good for Yahoo and breathe new life into it. It could also be good for Tumblr, or it could be bad.
Let’s focus on what could happen if yahoo buy Tumblr though. Nothing will change, at least not by much. Yahoo may be a failing company, but I doubt they’re stupid. David Karp is rumoured to be staying on as CEO of Tumblr for the next 4 years, to make it grow. This means that it’s more than likely that Tumblr will continue to exist as is.
Yahoo aren’t stupid, as I said before. They don’t want their last chance to become a viable competitor to Google and Facebook to fail…and at the moment Tumblr is growing. It makes sense to take the same route as Disney did with Pixar and Google did with YouTube. It will be under the Yahoo umbrella, but it won’t be directly run by Yahoo. Makes sense right?
Facebook is also rumoured to potentially swoop in at the last minute and buy out Tumblr. This is unlikely. They don’t have to. They already used this strategy to buy out Instagram..which is another reason Yahoo needs Tumblr to stay successful.
If Yahoo takes over Tumblr completely, with no independence allowed, it’s likely that Facebook would reduce. Tumblr could fail, and the social networking giant loses one of it’s latest competitors. They can sit back and watch it fall apart.
So whether or not the deal goes through tomorrow, Tumblr will probably remain the same. The worst that will happen is that we’ll get an ad at the side of our dashboard. And let’s face it, adBlock+ would mend that quick enough. Or we could just bear it.
It’s not going to stop you reblogging. It’s not going to change your blog. That would be a bad business decision and would be the final blow to the struggling company that is Yahoo. They won’t make that decision. If they do, they’re idiots and will have to watch as 1.1 billion gets flushed away and a new company takes the place of Tumblr.