Yahoo In Talks With Tumblr, Partnership Or Acquisition Possible


Tumblr and Yahoo Partnership


Tumblr and Yahoo Partnership

Yahoo is on an acquisition tear of late and now the software giant may be in talk to partner with or acquire popular blogging service Tumblr.

While some reports point to a strategic alliance between the two companies, other reports believe Yahoo could pay upwards of $1 billion for the platform.

Speaking to AllThingsD a source close to the talks says the $1 billion offer would be a high premium over the platforms $800 million valuation. Tumblr recently raised $125 million which placed the high valuation on the platform.

Tumblr currently plays host to more than 117 million monthly visitors with a total of 107.8 million blogs (as of April). Tumblr currently hosts more than 50.6 billion posts.

Tumblr just started to generate its first revenue via a small amount of advertising located on the user dashboard pages. Tumblr also charges customers to promote their favorite Tumblr posts. Last year Tumblr earned $13 million and in 2013 the platform might earn $100 million.

Yahoo has been on a path towards acquisition for some time now, recently picking up news reader app Summly and video chat startup OnTheAir.

Do you think Yahoo would be a good fit for Tumblr?


James Kosur

James Kosur has worked in the new media space for the last 10 years, helping many publications build their audiences to millions of monthly readers. He currently serves as the Director of Business Development at Business2Community.com and the CEO of Aven Enterprises LLC.

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  1. I have never used tumblr, but it seems like it could be a benefit; it definitely wont be excited for my own use if they do. I just hope it doesn't make Yahoo inconvenient.