Yahoo has a problem: it has no idea what it’s doing, or how it’s going to do it (outside of teenage dream hires). Some people who claim intimate knowledge say the company is going to do it by throwing a serious Hail Mary: buying Tumblr for $US1,000,000,000. That’s one billion.
AdWeek says it’s a matter of cool or death for the ageing geriatric web portal:
While its revenue is modest, Tumblr has positioned itself as one of the few players in the digital ad world that is well suited for brand advertising. And Tumblr is also the domain of the young, cool and creative crowd — not currently a Yahoo sweet spot.
Given how little Tumblr’s shows it can earn, this would be a major (risky!) purchase. But nothing says By God, Yes, Make that major purchase like the stench of financial ruin. TV GIFs!