Tumblr is becoming part of the Yahoo stable. The deal, rumors of which surfaced on Friday last week, was revealed yesterday by AllThingsD's Kara Swisher and confirmed this morning by Yahoo's CEO Marissa Mayer.
The deal cost Sunnyvale $1.1 billion, and ties Tumblr founder David Karp to the Internet firm for at least four years. He will retain a lot of control over the microblog which he founded in 2007—plus a great deal of cash. And Yahoo gets a taste of Tumblr's cool factor. Social media reactions to the news are mixed:
Gutsy call: “Either this management team is going to turn Yahoo around or be the ones who squandered its asset base." nytimes.com/2013/05/20/tec…— Tony Wang (@TonyW) May 20, 2013
"Certainly Yahoo has a track record of taking cool and making it uncool..." latimes.com/business/la-fi…— Brian Solis (@briansolis) May 20, 2013
@fastcompany Great idea for Yahoo, as long as they don't mess with it.— Joe Gaffney (@j_gaffney) May 17, 2013
So, what's in it for Tumblr, aside from user complaints that the site has sold out to the man? It gets access to Yahoo's ad network. Karp had also been searching for a COO to help him with the "infrastructure" of the business.
Over on Tumblr, the wailing and teeth-gnashing was even more pronounced, with some people heralding the deal as the death of Tumblr, calling out Yahoo for its "mediocrity," and generally being a less than optimistic about the deal.
What do you think? Is this a wise move by Yahoo, or is this a Tumblr deal-breaker for you?
[Image: Flickr user torbakhopper]