Was Yahoo’s Latest Social Media Acquisition A Good Buy?
Yahoo is making headlines again. This time it’s because Marissa Mayer and company have purchased social media upstart Tumblr.
Analysts were shocked but I’m not surprised Yahoo made a social media play, they have no mobile so they needed a more modern revenue stream away from search. But is Tumblr a real social media innovator or a regurgitation of Blogspot? It’s not a Pinterest or an Instagram and the rate of growth for the site may have peaked.
Tumblr won’t continue to grow exponentially and most analysts and commentators I heard today don’t have an account or understand it, but then must of them don’t have much of an organic Twitter following. Tumblr isn’t something everyone uses like Facebook and businesses have not jumped on board. If Tumblr was on the rise and growing like Twitter or Facebook? Why did David Karp sell it? Maybe he knew something Mayer didn’t (or I’ve joined the underestimation bandwagon too soon)?
The Tumblr craze has passed because first adopters such as musicians, DJs, actors and socialites have waned in usage. Many clients I advise just reached out to find out what the heck Tumblr is. Could Tumblr be the next YouTube? That’s unlikely but with 300 million uniques per day, it’s possible I’ve overlooked this acquisition as more than a late attempt for Yahoo to finally have a piece of social mobile. Tumblr hasn’t shown it can effectively advertise and maintain its user base which has been a big problem for Facebook and was noted in a recent comment by Rupert Murdoch on the company one year IPO anniversary… He wrote:
“Look out Facebook!” ….“Hours spent participating per member dropping seriously. First really bad sign as seen by crappy MySpace years ago.” Tumblr could be suffering from a similar issue soon.