Will Yahoo ruin Tumblr?
Marissa Mayer's team has already promised not to 'screw up' the wildly popular blogging site. Getting ads integrated will be that vow's first test.
As TechCrunch noted, some Tumblr users have launched a petition that it hopes will attract 5 million backers to stop the acquisition, though odds of derailing it are remote. One user with the handle of "thesexygiraffes" is quoted as saying the acquisition "is actually stressing me out."
This view isn't unique. As Kara Swisher noted on AllThingsD, imports from Tumblr to WordPress on Sunday hit 72,000 in one hour, up from a typical 400 to 600.
Though Internet users grumble about changes large and small, the fears about Tumblr are justified. After all, CEO Marissa Mayer has indicated that Yahoo hopes to monetize the site by running ads, which Tumblr doesn't do currently -- a selling point for many users. But Yahoo's plan is hardly shocking, considering that Tumblr reportedly isn't profitable.
Moreover, Yahoo has a lousy track record in integrating acquisitions. The company bought photo-sharing site Flickr in 2005, only to allow it to wither and see its market position get usurped by Instagram. Yahoo also had high hopes for Geocities when it acquired that business for $3.6 billion in 1999. Geocities is now defunct in the U.S.
Investors, though, are betting Yahoo has learned from its blunders. Shares of the company were trading up Monday. Yahoo is keeping Tumblr's existing management team in place, including 26-year-old co-founder David Karp, who stressed to users that they have no reason to be worried.
"We’re not turning purple," he wrote on the Tumblr staff blog. "Our headquarters isn’t moving. Our team isn't changing. Our roadmap isn't changing."
How Yahoo addresses the concerns of Tumblr's rabid users, which give the site 300 million monthly unique visitors, will take a while to become apparent, but that's clearly the key to how successful this venture ultimately turns out.
Jonathan Berr does not own shares of the listed stocks. Follow him on Twitter @jdberr.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The major averages began the new trading week on a slightly lower note with small caps leading the weakness. The Russell 2000 shed 0.3% while the S&P 500 slipped less than a point with six sectors ending in the red.
Equity indices began the day in negative territory with only the Nasdaq (-0.04%) making a very brief appearance in the green. After sliding through the first hour of action, the major averages reversed and spent the remainder of the session climbing off ... More
More Market News
Like many companies this winter, the fast-food giant blamed a drop in same-store sales on the weather. But could its problems be bigger than a snowbank?
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'