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Techquity: Yahoo's Tumblr deal in more than a blog post

Monday, May 20, 2013 - 03:19

May 20 - What Yahoo is getting for its $1.1B purchase of Tumblr and how analysts and Tumblr users are reacting.

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The high cost of cool Yahoo! C a vote chemical and sweet. It -- ramp up advertising reaching younger eighteen to 34 year old demographic. -- making ourselves cool. Now the company's taken that giant step in that direction. What what billion dollars for Tumblr putting -- David Karp out at this site in 2007. The platform had more than 116. Million unique visitors to desktop version April. That ranked at number 34 worldwide according to comScore. Yahoo! paying mostly expert toddler which is expected to boost its audience by 50%. No immediate reports indicate toddler had revenue of only thirteen million dollars last year. The company has not disclosed its financial details. Interesting point in the conference call with Wall Street analysts earlier today on the money quite. Big deal won't make Yahoo! any money this year but the company says revenues from Tumblr. We'll start materializing. In a major way next year. Yahoo! leagues next talked about maintaining that Tumblr experience. It alienate Tumblr users with a barrage of bad. And synergies forget about it at least when it comes to demographics. Yahoo! admitted there are users who will always prefer Tumblr and may never come to Yahoo!'s. I have an -- caught analysts not exactly wowed by the prospects. People saying it doesn't -- Tumblr moves the needle for Yahoo!. Well RBC capital markets said it was mutual on the deal calling it a long shot long term investment. That they were willing to give CEO Marissa Mayer at the benefit of the doubt as she continues her around attacked. Stock was down factually earlier in the session now it is up 1%. Near 27 box. Yahoo! is buying a company with tremendous growth in terms of usage. Desktop traffic grew 6% in April from a year ago about the same as the whip overall according to comScore. -- grew 85%. Albeit from a much slower pace that growth is similar to interests and is in the top twenty global. Comparison also relevant when looking at mobile data Cutler had the fifteenth most download an app in the US march. According to -- or an evercore partners'. Interest was number fourteen. -- -- also popular in Canada and Australia. Others still hasn't got unnoticed by Tumblr users who are posting comments about it. He even. Got in the game call announcing the deal has been reached and adding we promise not to screw it up. And other user came up with -- branding suggestions. -- Lou in our boats and with an idea how to make a lot of money. Advertising. Answer whether it's old media new media or social media so things never change. That's equity it is Monday and -- follow us on here at art are happening. I'm rob there is this right here.

Techquity: Yahoo's Tumblr deal in more than a blog post

Monday, May 20, 2013 - 03:19

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