After it was announced that Yahoo would be acquiring Tumblr there are a billion reasons to find out what Tumblr is going to become with Yahoo at the helm.
Tumblr’s acquisition makes us realize that Yahoo needs to rebrand itself to be more than just web portal to survive as a major player. Marissa Mayer, Yahoo’s CEO knows this and is looking to adapt to the times with its latest acquisition of Tumblr. Obtaining a social platform is a start with Tumblr’s revenue being $13 million in 2012 and an estimated leap to $100 million+ in revenue for 2013
This is a strategic investment that will move Yahoo forward towards a more social space while appealing to a different demographic. Continual growth to buying mobile startups, combines for a strong set of existing media offers that will put Yahoo back on track.
It looks like Tumblr fits the strategy with as a strong mobile offering, young demographics and its social appeal which Mayer recognizes and clearly wants to target.
It looks like next in Mayer’s eyes is Hulu, a seemly valuable property right now. With $4 billion dollars cash on hand, we’ll see how Yahoo can get a deal going with Hulu and how they will leverage this next possible acquisition.