Internet pioneer Yahoo has confirmed that it intends to purchase popular blogging website Tumblr for more than $AU1.1 billion. Analysts say the acquisition is part of an effort by Yahoo to connect with a younger, hipper crowd as part of its battle to revive an ailing audience, and to up the fight with rival search engine Google’s global domination.
Tumblr, which was founded in 2007 by a high school drop out, is now one of the web’s most popular social media sites. Yahoo has been searching through a range of possible acquisitions since the mighty Ms Mayer took the helm last year, vowing to revive the company, which has seriously wilted in the face of competition from Google.
Tumblr could be key to Yahoo’s strategy, its popularity with younger internet users is unsurpassed. A survey this year conducted by the online data group Survata found Tumblr more popular than Facebook among those aged 13 to 25. While Tumblr generates very little cash, bringing it in the Yahoo family could offer the potential for new advertising and other revenue sources :: Read the full article »»»»