Yahoo Now Linked With Tumblr Deal

It's easy to see why Marissa Mayer is interested in the microblogging site: Its 18-24 demographic could bring more young people to Yahoo.

Where is Yahoo turning its attention to now? AllThingsD reports that Marissa Mayer is eyeing David Karp's microblogging site Tumblr with hopes to land some sort of deal, be it an acquisition or a percentage stake.

Mayer is said to be an admirer of Tumblr, and no doubt its 18-24 demographic would fit perfectly with the CEO's drive to bring more young people to Yahoo. Indeed, CFO Ken Goldman spoke at a conference earlier this week and said the firm was on the hunt for cool. "One of our challenges is we have had an aging demographic," said Goldman. "Part of it is going to be just visibility again in making ourselves cool, which we got away from for a couple of years."

There is some speculation, however, that Facebook wants in on the action, too. As more young people turn away from Facebook, the social network could also benefit from Tumblr's young demographics.

As ever, neither firm would comment on the rumors, but Tumblr is currently looking for additional funding. So far it's raised $125 million and is valued at $800 million, but is aiming to increase its worth by 25%, so that it becomes a billion-dollar company. Added to that, Tumblr has been searching—fruitlessly, so far—for a Sheryl Sandberg-esque COO to help Karp manage his baby. There's a jewel of a quote in the AllThingsD piece about the firm's top tier:

"David is very charming, and clearly very very bright, and understands the product," said an executive who talked to Tumblr about the role. But, "he’s incredibly confrontation averse, and there’s almost a ‘Game of Thrones’ palace feeling to the management team."

What do you think of a Yahoo-Tumblr deal? What could Marissa Mayer do with David Karp's site? What would it bring to Yahoo? Or do you think Tumblr would be better off with Facebook than Yahoo? Our comments box is at your disposal.

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