Marissa Mayer, a former Google employee, was appointed Yahoo’s 3rd chief executive last July. Her goals for the company were to increase its market share and to compete more with their main rival – Google. In an interview last October, she told Marketing Week that “Our top priority is a focused, coherent mobile strategy…it is clear that at some point in the future Yahoo! will have to be a predominantly mobile company.”
On the 20th May, Mayer made a conference call confirming Yahoo’s acquisition of the blogging service Tumblr. This purchase cost Yahoo £723 million, but it’s expected to increase their monthly user rate by 50% – equating to more than a billion visitors. Mayer described Tumblr as “the internet’s fastest-growing media frenzy” and justified the multimillion pound transaction by outlining the points that the 2 companies have in common.
“Both companies are homes for brands – established and emerging. And, fundamentally, Tumblr and Yahoo are both all about users, design, and finding surprise and inspiration amidst the everyday.”
Many existing Tumblr users have expressed their concern regarding this acquisition; claiming that it’s likely to go the way Flickr did when Yahoo acquired it – downhill. Several other users have expressed their views on Twitter and Tumblr itself, describing it being “the end” of the blogging platform. David Karp, the founder of Tumblr, will remain as CEO of the outfit. He claims that the only difference the sale will make, is that they will have the support and backing of Yahoo. Karp explains:
"Our team isn’t changing. Our roadmap isn’t changing. And our mission – to empower creators to make their best work and get it in front of the audience they deserve – certainly isn’t changing.”
Now the purchase of Tumblr is complete, Mayer is said to be back on the acquisition trail. There have been reports that Yahoo has bid up to £530 million for the online video service Hulu. Hulu is a video on demand service that is primarily funded by adverts. It was a joint venture between global giants; Comcast, Disney and News Corp. Although currently only available in the US, Hulu is looking to expand its services globally.
There are further reports Mayer’s acquisition trails doesn’t even stop at Hulu. Yahoo has recently set up a bid to purchase a stake in a French video site called Daily Motion, worth £132 million. However neither party have yet made official statements about the offer.
Mayer has been with Yahoo for under a year, but has implemented some of the biggest (and most expensive) changes that Yahoo has seen. Let’s hope the results are worth the investments!