This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

Yahoo!: Tumblr Has A Really Good Thing Going

NEWPORT BEACH, CALIF. ( TheStreet) -- Yahoo!'s (YHOO - Get Report) acquisition of Tumblr is not just about the audience, it's about the possibilities for the two companies, Yahoo! CEO Marissa Mayer said during a CNBC interview.

"Tumblr has a really good thing going," Mayer said during the interview. "We don't want to mess that up." She noted that Tumblr, which was purchased for $1.1 billion, mostly in cash, will operate independently, save for certain functions. These include search, discovery, and pulling some of Tumblr's content into Yahoo! properties. Mayer noted that Tumblr has strengths where Yahoo! does not, most notably in food, fashion and art.

Not only is the New York-based Tumblr strong in key content areas, it also brings some technological advantages. Tumblr is strong on mobile, whereas Yahoo! is still lagging on that front, a point Mayer has made ad nauseam.

By acquiring Tumblr, which is experiencing incredible growth, Yahoo! has expanded its audience to over 1 billion users a month. Tumblr CEO David Karp, who was also part of the interview, noted that Tumblr has over 105 million blogs, and is seeing more than 900 posts per second. By marrying Tumblr's incredible growth with Yahoo!'s ad sales technology (Mayer noted that Tumblr has a nascent idea when it comes to ad sales), the potential is explosive for both companies.

By remaining independent, Tumblr will be allowed to continue in hyper-growth mode, and Mayer cited similar scenarios that have worked out. Google's (GOOG) purchase of YouTube and eBay's (EBAY) purchase of PayPal are two of the most prescient examples. "We bought a growth opportunity and we can help Tumblr execute on that,"Mayer said.

Yahoo! shares were higher in Tuesday trading, up 1.47% to $26.97.

-- Written by Chris Ciaccia in Newport, Calif.

>Contact by Email.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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.
Submit an article to us!
YHOO $45.01 0.13%
TSLA $190.81 0.13%
AAPL $125.16 -0.96%
FB $83.27 0.09%
GOOG $553.09 0.19%


DOW 17,857.93 -118.38 -0.66%
S&P 500 2,078.44 -7.80 -0.37%
NASDAQ 4,925.3470 -22.0940 -0.45%

Partners Compare Online Brokers

Free Reports

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