Yahoo’s acquisition of Tumblr in 2013 for $1.1 billion raised high hopes for the blogging platform. Yahoo’s CEO, Marissa Mayer, promised not to “screw it up” and pledged to operate Tumblr independently. However, the reality has been vastly different. Tumblr’s growth has stagnated under Yahoo’s management due to a lack of understanding of the platform’s user base and culture.
Yahoo’s attempts to monetise Tumblr have also been fraught with problems. The tech giant initially tried to implement traditional display ads, which were rejected by Tumblr’s user base. Yahoo then shifted to sponsored posts, but these have also been met with resistance.
The lack of growth and revenue has led to significant write-downs for Yahoo. In February 2016, Yahoo took a $230 million write-down on Tumblr, followed by an additional $482 million write-down in July. These write-downs, combined with Yahoo’s own financial struggles, have raised questions about Tumblr’s future.
Meanwhile, Tumblr’s founder, David Karp, who stayed on as CEO after the acquisition, has struggled to maintain his vision for the platform under Yahoo’s control. Karp’s frustration has led to speculation about his future with the company.
While Yahoo’s acquisition of Tumblr was initially seen as a promising move, the reality has been a series of missteps and disappointments. The future of Tumblr under Yahoo’s control remains uncertain.
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