CNET News Video: Will Yahoo reclaim its mojo with Tumblr acquisition?
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CNET News Video: Will Yahoo reclaim its mojo with Tumblr acquisition?2:14 /
Looking to gain a foothold among younger users, Yahoo is shelling out $1 billion for the microblogging site Tumblr. CNET's Sumi Das explains the high valuation and how it will affect both buyer and seller.
-Christine Samra is one of 108 million people who blog on Tumblr. -A friend of mine introduced me to a blog that was only on Tumblr. So, when I went on that blog, I liked it. And it just-- it made blogging easier to kinda condense all your blogs into one spot. -The site has a diary like Feel, offering users a mix of blogging and social networking. Samra was drawn to its simple format, finding it faster to follow and share fashion and music blogs on Tumblr versus competitors like WordPress. -If my mom wanted to do a-- get a blog, I would recommend her to use Tumblr. It's almost like painting by numbers; it's so easy. -Since its 2007 launch, Tumblr has built up clout. BeyoncÃ© and her husband Jay-Z debuted photos of their first-born on Tumblr. It also attracts fashion icons and sports outlets. Tumblr's distinctly youthful vibe, most users are under 35, makes it especially appealing to the struggling tech giant, Yahoo, which is acquiring Tumblr for $1.1 billion. -We couldn't be more excited about bringing Tumblr into the Yahoo portfolio. -Right now, it's kind of an 18-year-old brand that kind of lost its mojo. By bringing in Tumblr and all those users and all that content, it's possible for Yahoo to be re-imagined as a-- as a truly 21st century rather than 20th century website. -The news had some Tumblr users bolting to competitor WordPress, perhaps worried about advertising, which could play a bigger role on the new Tumblr. -Well, there've been seen defections from Tumblr users, but it's a small number when you compare it to the overall number that they have. -Yahoo CEO, Marissa Mayer has said Tumblr will remain independent and said, "We promise not to screw it up." -Tumblr is a phenomenal company, and we couldn't be more excited. While we're acquiring it, we intend to operate it independently. Their roadmap, their vision, all of that stays on track. -Meanwhile, Tumblr fans are hoping that's a promise the company keeps. In San Francisco, I'm Sumi Das, CNET.com for CBS News.