yahoo tumblr buyout
Report: Tumblr May Reject Yahoo’s $1.1B Acquisition Offer For Being “Too Low”

Tumblr feels that Yahoo’s $1.1 billion offer as “too low” and view it as “only a first offer”, according to sources close to to acquisition talks. Yahoo may have to significantly increase the offer to close the deal. An acquisition by some tech giant is likely in the cards for Tumblr, though, as sources say the company only has a few months of cash runway left.

… still hope yet, according to TechCrunch.
Tumblr In Talks With Yahoo; Facebook And Microsoft Also Said To Be Circling

While this is the case (and Facebook and Microsoft are definitely ready to pounce), Yahoo currently has Tumblr negotiations under lock and key, Forbes reports:

A source with knowledge of the Yahoo/Tumblr discussions says they are proceeding rapidly and likely to result in an offer as soon as Yahoo CEO Marissa Mayer can get her board’s approval. She is said to favor an outright acquisition rather than an investment or partnership. As mentioned above, a lockup agreement prevents Tumblr from holding a bake-off with Facebook, Microsoft or anyone else.

Part of Mayer’s courtship has involved working overtime to convince Karp that his fears of being “absorbed into a behemoth” and “raided for talent and traffic” are unfounded. Karp has made it clear that he would like to run Tumblr for a long time. According to my source, he would remain CEO under the outline of the deal being worked out.

Those last two sentences are key.

Wordpress has found itself flush with a few new users following news of the Yahoo/Tumblr deal
  • 400-600 posts per hour are typically imported from Tumblr to new Wordpress blogs, according to founder Matt Mullenweg, prior to the company’s recently announced acquisition by Yahoo.
  • 72,000 posts per hour have been imported since news of the buyout first broke, though that’s hardly a number for Yahoo/Tumblr execs to worry about, given the site’s 75 million post per day average. source

obitoftheday  asked:

What do you think happens in Yahoo buys Tumblr? And why do we all agree that it seems like a bad idea?

(EDIT: On reader request, here’s a rebloggable version of this.)

» SFB says: I think Tumblr starts monetizing itself more effectively. For years they’ve tried to do everything but the obvious, but the problem is, they’ve turned down a lot of good ideas as a result.

(Comparison: has succeeded at profitability by both offering paid premium features and revenue sharing-style advertising for bloggers—both things Tumblr has chosen not to do, but could arguably do better than WordPress if it chose to do so. Nobody really complains about Wordpress’ ads. Think that might be because they created a context for it that didn’t bug users?)

But this could come at the cost of a very strong community. I know of one heavily-active user I liked reading, The Callus, who has quit Tumblr and deleted all of his posts as a result of the whiff of a rumor of this buyout happening. I don’t think you or anyone else should follow suit, but that’s what people are doing.

As for the “bad idea” chunk of your questions, the problem is this: Yahoo has a reputation for letting acquisitions flounder under its corporate structure. Even the big ones. Delicious, for example, was nearly shut down before the founders of YouTube swooped in and saved it. And Yahoo has also tried the user-generated market before, including with Geocities and Yahoo Meme (which was effectively Yahoo’s failed attempt to create a Tumblr clone). Yahoo has a long list of discontinued products. And while Laurie Voss has a good point about Flickr, there’s a better point here: Building a community with integrity is tough, and change at the top can ruin everything if done the wrong way. I can understand why people might be worried. I’m worried, too. — Ernie @ SFB

P.S.: One key line from the story we linked last night: “sources say the company only has a few months of cash runway left.” Who knows if that’s true, but this is a company that unceremoniously fired its editorial team recently—a move that could be seen in a different light considering that line, though that’s speculative. Tumblr can’t run on dreams and reblogs and investor money forever. Something has to change on the business front to ensure the likes can keep coming. That change can come from the inside, but the change can come more easily from an exit.

artist-designer-deactivated2015  asked:

don't you think there's gonna be a great deal of contention between companies with er... unscrupulous labor practices using Tumblr as an ad platform and the large and vocal social justice community on the site?

» SFB says: Newspapers cover the social justice community too, and sometimes they run ads from companies whose interests don’t match their own. That doesn’t mean it affects the content being created. It’s what folks in the newspaper business call a “church and state” thing. I’d recommend everyone take a wait-and-see approach. If it turns out we get an ad like this Atlantic ad, then we should probably complain. — Ernie @ SFB