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Tumblr users have good reason to popeye slot machine emoji be apprehensive, because Yahoos track record with acquisitions has been decidedly mixed.
Thompson, who had replaced the outspoken Carol Bartz as CEO, was soon jettisoned.For Yahoo CEO Marissa Mayer, the number appears to.1 billion.Facebook last year for 1 billion in cash and stock.Mayers challenge now is to begin leveraging Tumblrs massive user base to boost Yahoos bottom line.Already, many Tumblr users are less than thrilled about the Yahoo deal: when time wrote about the impending offer on Friday, hundreds of Tumblr users took to the comments section to voice their objections.In short, for many users, the question is not whether Tumblr will make Yahoo cool, but whether Yahoo will suck the coolness out of Tumblr, as my colleague Harry McCracken observed.Yahoos board approved the transaction on Sunday, and an announcement is expected on Monday, according to AllThingsD.since assuming command of Yahoo in July, Mayer has made clear that she wants to incorporate Yahoos products like Yahoo Mail, Flickr and its popular home page into the daily habits of its users.He left the company in 2007.But she needs to act carefully.Jason Alden / Bloomberg via Getty Images.And for whatever reason, I dont want to identify with Yahoo.Internet users are fickle, and teenagers doubly.Even Flickr, the photo-sharing site Yahoo purchased in 2005, has languished in the shadow of upstarts like Instagram, which was purchased.The question is whether Tumblr can burnish Yahoos image with younger users, some of whom werent even born when Jerry Yang and David Filo founded the company in 1994.Tumblr is extremely popular with the highly coveted 18-to-24-year-old demographic.Yahoos.1 billion deal to buy Tumblr is Mayers largest acquisition to date, and represents something of a high-stakes gamble, because the purchase price constitutes over one-quarter of the cash and short-term investments on Yahoos balance sheet.Veteran media executive Ross Levinsohn new free bingo was named interim CEO, but Yahoos board clearly felt that more drastic change was needed and hired Mayer, an accomplished engineer with computer-science degrees from Stanford, who was Googles 20th employee.Whats the price of cool?Although.1 billion seems like a massive amount to pay for a company that generated only 13 million in revenue last year, its not hard to see Mayers logic: Tumblr has become a cultural phenomenon with over 100 million intensely loyal users reading and posting.As one Tumblr source told the website: This will be a very delicate dance, since so much could go wrong if done without care.
What's the price of "cool"?