NEW YORK ( TheStreet) -- Yahoo! (YHOO) continues to remain an Alibaba-driven story - much of the run up in the company's shares is due to its 24% ownership stake in the Chinese e-commerce giant. One potential big payoff for core Yahoo!, however, is Tumblr, and the company has updated investors about its progress.
On Yahoo!'s earnings call on Tuesday evening, the company decided to do something different and take questions from Twitter, in addition to the usual round of analysts' questions. I grasped this opportunity to fire off a question about Yahoo!'s $1.1 billion acquisition of Tumblr, and its role in CEO Marissa Mayer's attempts to turn the Internet giant around.
Here's what she and Yahoo! CFO Ken Goldman had to say regarding the acquisition: Mayer: "We said when we first acquired Tumblr that we would have it be accretive to EBITDA probably in 2014. Right now, their focus is really on gaining users in particular mobile users and they overall have been outperforming their projections." Goldman: "We are quite happy. I mean, the metrics there have been quite good. We worked with them, David Karp and team in terms of how they think about revenue and monetization and make sure they do it right. So we're working very well together on that and again we remain every bit as confident about that merger acquisition today as when we did it back in June." It's nothing Earth shattering, and I didn't get any incredible revelations, but it's awesome to start a working dialogue with one of the technology world's most renowned CEOs. It's also a testament to Mayer that she is now open to taking questions from journalists on earnings calls, something that has traditionally been reserved for Wall Street analysts. Clearly, Mayer is serious about increasing transparency at Yahoo! -- Written by Chris Ciaccia in New York >Contact by Email. Follow @Chris_Ciaccia
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