This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Next Instagram-Size Acquisition Could Be Tumblr




By Julia Boorstin, CNBC Correspondent

NEW YORK (CNBC) -- Even if you're not familiar with blogging service Tumblr, you've probably visited one of the 20 billion blog posts on the 50 million blogs the company hosts.

But you may not realize that Tumblr is second only to Facebook in terms of engagement, with its visitors spending an average of 160 minutes on the site each month.

What exactly is Tumblr? It allows anyone to set up a free, simple blog. The idea is for users to be able to quickly post a variety of media--not just text, but also photos, video, and links to content from around the web.

When users come across something interesting online, they can click 'Share on Tumblr' for the content to show up on their blog.

More from CNBC
Which is Sexier, Twitter or Facebook?
Photo-Sharing Land Grab
Skylanders: 'Spryo's Adventure' Has Just Begun

And the term 'Tumblr' is actually overtaking the more generic 'Blog' term. According to Google Search results, people will search for the word 'Tumblr' on Google more often than they search for 'blog' before the end of 2012.

ComScore just revealed some new numbers about Tumblr's growth--which reveal why it's so valuable to investors. Tumblr drew 1.8 million unique visitors in March - that's a million more than February, and over 2.5 times its visitors a year earlier.

And while Pinterest gets all the buzz for its growth, Tumblr is bigger, without the same copyright concerns.

The business model is nascent--it recently started allowing users to pay a dollar to promote a posting--but the potential seems hugs. Dozens of fashion, media, and publishing companies, from J. Crew, to Reuters, to NBC, post on the service. It allows them to communicate with fans and followers in simple and quick, but more nuanced way than Twitter.

And when it comes to the trend-setting generation, Tumblr could be starting to steal some of users time from Facebook. ComScore says Tumblr usage skews heavily to teens and college-age kids - the 12-24 year-old demographic. And its users tend to be affluent - almost 43% of Tumblr users have a household income of $75,000 or more.

Tumblr, which launched in 2007, has raised a total of $125 million in venture funding. As of last September it was valued at $800 million. Considering Instagram's $1 billion price tag, Tumblr could be worth even more.



--Written by Julia Boorstin at CNBC

CNBC is a world leader in business news, providing real-time financial market coverage and business information.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs