![]() So far, Tumblr users seem less than thrilled by the acquisition. Although the two companies apparently share "a vision for Tumblr's business that doesn't compromise the community and product we love," Karp writes, Tumblr users are worried about Yahoo's iffy track record with big acquisitions, including GeoCities (which was shut down for good in 2009) and Flickr (a once-beloved photo service that is inexplicably still trying to rebuild). Summer also points out that one of the factors that has made Tumblr popular with users is the lack of advertising, something which may be difficult to maintain as Yahoo looks to monetize the service.For Tumblr? The benefits - other than access to Yahoo's deep pockets and resources - are less obvious. "In our view, Yahoo has essentially paid a high price for incremental page views without filling in gaps in the business," he added. Rick Summer, an analyst with investment firm Morningstar, said the "deal is probably overpriced" in his analyst note. However, some financial analysts believe Yahoo simply paid too much for the company. is to do so without diluting the Tumblr secret sauce while drafting enough of the Tumblr brand to make Yahoo cool again," he added. Tumblr is ridiculously strong in terms of engagement among Millennials and to some extent Generation Y," Brian Soils, a principal analyst at Altimeter Group, told ABC News. "For all intents and purposes, Yahoo as a media brand skews toward older demographics. Analysts and reports also say that Tumblr had a "cool" appeal to Mayer and the Board. And she and the Yahoo Board, which voted on the acquisition over the weekend, are hoping Tumblr is one of the answers to making the company a real tech player again. However, Tumblr will be the largest acquisition of Mayer's to date. She has also overseen the purchase of other companies, including Summly, Astrid and GoPollGo. At Yahoo she is aiming to turn the company around, investing heavily in mobile products and reinvigorating current products, including Yahoo Mail. Mayer, 38, took over as Yahoo CEO in July 2012 after over 10 years at Google. Tumblr is the Internet's fastest-growing media frenzy." "Yahoo is the Internet's original media network. "On many levels, Tumblr and Yahoo! couldn't be more different, but, at the same time, they couldn't be more complementary," Mayer said in a statement. Mayer also says that the companies together will create a very large media network. While Yahoo promises not to change Tumblr's product the companies will now work together to create advertising opportunities. 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." "We're not turning purple," Karp announced on Tumblr's official Tumblr News page. ![]() Tumblr allows users to create their own blogs, follow other blogs on the network and like them or reblog posts. Mayer repeated in a company statement that Yahoo will "not screw it up." It plans to keep Tumblr an independently operated business with David Karp, Tumblr's 26-year-old founder and CEO, remaining on. Tumblr is incredibly special and has a great thing going. "I'm delighted to announce that we've reached an agreement to acquire Tumblr!," Marissa Mayer, the CEO of Yahoo, announced on her own Tumblr blog this morning. The company announced today that it has purchased Tumblr, the popular blogging and social media network, for $1.1 billion. — - Yahoo is investing big-time in the social media. ![]()
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