Ya-who? The faded Web pioneer announced on Sunday that they are moving forward with their plan to buy Tumblr for $1.1 billion–in cash. The company is desperately trying to reposition themselves as the tech industry gets increasingly more social media focused, but can Tumblr save Yahoo from oblivion?
As a spunky, social media startup, Tumblr has a well-defined experience that attracts a loyal following among millennials. Tumblr has a lot of credibility among the audience that Yahoo is desperate to grasp; yet the concern among users is that Tumblr will loose its appeal once they take over. Some have even taken to Twitter with threats to leave the site if the deal takes place.
The merger would represent the largest acquisition of a social networking company to date, topping Facebook’s $1 billion purchase of Instagram last year. For Yahoo, Tumblr brings a breath of fresh air and an opportunity to make up for missing out on so many technological and social media revolutions.
Yahoo is no stranger to paying big money for startups, but they are known for letting their acquisitions fall into darkness, i.e. Flicker and GeoCities. Can Yahoo step up to the challenge or will this be the end of Tumblr as we know it ?