Will the Tumblr acquisition help Yahoo become hip again?
Will the Tumblr acquisition help Yahoo become hip again?
4:55

Will the Tumblr acquisition help Yahoo become hip again?

Tech Industry
-Hello, and welcome to Inside Scoop. I'm Sumi Das. And joining me is Dan Farber, he's an editor for CNET. Dan, thanks for being with us. -My pleasure. -So, Yahoo has gone shopping. They bought Tumblr for a really cool price of $1.1 billion. Why did Yahoo decide to make this purchase? -Well, it's actually a good fit for both. Yahoo is a company that's, you know, seeking to revive its brand. It's older-- it was a pioneer on the web but has since fallen on harder times. Marissa Mayer has come in as CEO over the last years. She's bought 10 little companies, and mostly for engineering talent. But now she's actually buying eyeballs, which is to say Tumblr has about 300 million visitors per month, 24 billion minutes are spent on that site every month, and it has about 108 million blogs. Add that all up, it's a lot of content. It's a lot of users. And most importantly it's a lot of young people who are very mobile. -Clearly this has to be valuable in Mayer's eyes because otherwise, why would you pay $1.1 billion in a mostly cash deal from what I understand. -Well, it's valuable over the long term potentially. And it's gotten more along the lines of what Mayer, who would say-- yeah, Google-- what Google has done with YouTube, which now generates about $4 billion in revenue. So over time, they hope to scale it up and go from, you know, 100 million blogs to a billion blogs or whatever it might be. But most importantly, they need to monetize it right now, as of last year that Tumblr did about $13 million. They say they're gonna do closer to 100 million this year, but it's still a kind of drop in the bucket for a company that has $5 to $6 billion. -There's been a promise from Mayer that they're not going to acquire and quite screw it up, because there are some very avid and ardent Tumblr users out there. Still we've heard reports of people defecting over the weekend to Tumblr competitors basically. What is the sort of reassurance going to get them, the promise of not screwing it up? I mean, do you think in reality that the service will remain unchanged? -Well, for the short term, they've made a promise. Mayer has made a promise to David Karp, who is the founder and CEO of Tumblr which is a 6-year old company compare to Yahoo's 18 years, that they will leave them alone, they will be run independently, that Yahoo will help out on personalization and infrastructure and monetization, but they're free to continue to do what they've been doing over these last several years. Over time, you would expect that there would be much more integration. The thing that wasn't mentioned, and this was rather curious, is that Tumblr is a social network. -Right. -It has followers and people follow each other. There is no mention of that. There were no numbers about that. It could be that they just don't want any comparisons to Facebook or Twitter. But it may be over time that Tumblr provides a backbone for Yahoo to have its own social network. -So that is one of the ways that it could be integrated into Yahoo's services and he [unk]-- -Over time-well, primarily to be integrated through search. When you search on Yahoo, whether on the web or Yahoo sites search, you'll see Tumblr results as well as through personalization. For example, if you are searching on something on fashion, well Yahoo is not really great on fashion content, Tumblr is. So they would be able to understand your profile and if you're interested in fashion, bring up some Tumblr results when you're searching on Yahoo or in your personal newsfeed. -The changes that Tumblr users can expect to see, you know, you said that over the short term, they're probably wouldn't be any. But there's a major one that probably a lot of users are concerned about and that's advertising. What do we know about how advertising may play a bigger role on Tumblr, because of this acquisition? -Well, I think it's very important for Yahoo to make some money-- -Of course. -from this acquisition, but they have to do without alienating the Tumblr users. Tumblr has already been involved in what's called native advertising, which is advertising that look like a blog on Tumblr, but they say they're sponsored. And they're in the news flow of what people are reading. I think that Yahoo is going to continue that and accelerate it. And perhaps do other kinds of brand advertising and display advertising. But as Mayer likes to say, they're going to do it in a tasteful way. -All right. Well, she's a tasteful woman, at least in her appearance there. And hopefully that's true. Dan Farber, thank you so much. For Inside Scoop, I'm Sumi Das. Thanks for watching.

Up Next

Samsung Note 8 will try to win back burned Note 7 fans
jessica-1

Up Next

Samsung Note 8 will try to win back burned Note 7 fans

iPhone 7 breaks Apple's sales records
inside-scoop-cnet.jpg

iPhone 7 breaks Apple's sales records

Apple's all about the MacBook on October 27
ismacbookcnet.jpg

Apple's all about the MacBook on October 27

Apple set to focus on iPhone at September 7 event
isapple97.jpg

Apple set to focus on iPhone at September 7 event

What the Verizon-Yahoo deal means for users
yahooverizon.jpg

What the Verizon-Yahoo deal means for users

What to expect at Apple's WWDC 2016
16n0607insidescoopwwdc.jpg

What to expect at Apple's WWDC 2016

Inside Scoop: Tim Cook talks privacy at Apple's shareholder meeting
inside-scoop.jpg

Inside Scoop: Tim Cook talks privacy at Apple's shareholder meeting

Inside Scoop: What will be the hottest phone from Mobile World Congress?
insidescoop.jpg

Inside Scoop: What will be the hottest phone from Mobile World Congress?

Ripple Maker gives us a taste of our face
ces1681insidescooppart1still.jpg

Ripple Maker gives us a taste of our face

Tech Shows

The Apple Core
apple-core-w

The Apple Core

Alphabet City
alphabet-city-w

Alphabet City

CNET Top 5
cnet-top-5-w

CNET Top 5

The Daily Charge
dc-site-1color-logo.png

The Daily Charge

What the Future
what-the-future-w

What the Future

Tech Today
tech-today-w

Tech Today

Latest News All latest news

See Why the Semi May Be Tesla's Most Important Vehicle
tesla-semi-00-02-40-12-still001

See Why the Semi May Be Tesla's Most Important Vehicle

How to Create Holiday Greeting Cards Using Keynote
ipadgreetingcard-site-thumb

How to Create Holiday Greeting Cards Using Keynote

Watch Elon Musk's SEMI Event in 9 Minutes
tesla-sb-v1-00-00-02-01-still001.png

Watch Elon Musk's SEMI Event in 9 Minutes

Fun Amazon Finds Under $100 for December 2022
p1050770-00-13-52-12-still004

Fun Amazon Finds Under $100 for December 2022

Neuralink Is Trying To Reanimate Body Parts
neuralink2022-explainer-v1

Neuralink Is Trying To Reanimate Body Parts

Watch Everything Revealed at Neuralink's 2022 Show and Tell Event
thumb1

Watch Everything Revealed at Neuralink's 2022 Show and Tell Event

Most Popular All most popular

Elon Musk Shows Latest Neuralink Demo of Monkey Typing with its Mind
neuralmonkey

Elon Musk Shows Latest Neuralink Demo of Monkey Typing with its Mind

2022 Ford Bronco Raptor: This Big Bronco Is Here
ford-bronco-raptor-still-v1

2022 Ford Bronco Raptor: This Big Bronco Is Here

EVs vs. Gas Engines: We Do the Math on Carbon Emissions
evs-exposed-still

EVs vs. Gas Engines: We Do the Math on Carbon Emissions

Watch Elon Musk's SEMI Event in 9 Minutes
tesla-sb-v1-00-00-02-01-still001.png

Watch Elon Musk's SEMI Event in 9 Minutes

Fun Amazon Finds Under $100 for December 2022
p1050770-00-13-52-12-still004

Fun Amazon Finds Under $100 for December 2022

Best Android Phones of 2022: Samsung, Google, OnePlus and More
1203459317449832-laz1jqjqlhclzhrpcncs-height640.png

Best Android Phones of 2022: Samsung, Google, OnePlus and More

Latest Products All latest products

See Why the Semi May Be Tesla's Most Important Vehicle
tesla-semi-00-02-40-12-still001

See Why the Semi May Be Tesla's Most Important Vehicle

First Look at Archer's Midnight Air Taxi
midnight

First Look at Archer's Midnight Air Taxi

Holoride Hands-On: VR in the Car Is Like a Disney Ride
holoride-00-00-03-12-still003

Holoride Hands-On: VR in the Car Is Like a Disney Ride

Hands-on With All of Microsoft's New Surface Devices
surfacepro9-event-00-00-04-05-still004

Hands-on With All of Microsoft's New Surface Devices

Microsoft Introduces Surface Studio 2 Plus
surfacestudio

Microsoft Introduces Surface Studio 2 Plus

I Used Meta Quest Pro: Here's What It's Like
questpro-00-03-30-13-still004

I Used Meta Quest Pro: Here's What It's Like

Latest How To All how to videos

MacOS Ventura Continuity Camera Turns Your iPhone Into a Webcam
1203246975312353-pnmdl8bwygpxcjffhlcf-height640.png

MacOS Ventura Continuity Camera Turns Your iPhone Into a Webcam

How to Clean Your Keyboard's Sticky Keys
3keyboards

How to Clean Your Keyboard's Sticky Keys

How to Play Games from PlayStation Plus on PC
psstill

How to Play Games from PlayStation Plus on PC

How to Delete or Disable Your Instagram Account
phoneonorange

How to Delete or Disable Your Instagram Account

Fix Your iPhone Screen With Apple's Self-Service Repair Kit
dsc00641

Fix Your iPhone Screen With Apple's Self-Service Repair Kit

How to Buy a Budget Laptop in 2022
budgetlaptops-00-08-35-15-still001

How to Buy a Budget Laptop in 2022