Yahoo’s Acquisition Of Tumblr And Its Aftermath

Yahoo & Tumblr

After the $1.1 billion Tumblr acquisition, Yahoo is currently looking for ways to benefit from the transaction. In order to ease the transition, Yahoo’s strategy will focus on operating Tumblr as its own brand. Furthermore, Yahoo will soon be promoting Tumblr content on its own media resources, giving Yahoo users the opportunity to find Tumblr if they haven’t already used it. We asked our Zintro experts, what advantages this acquisition could offer to both Yahoo and Tumblr.

According to Gerry Daniel, an expert in website search engine optimization, it is crucial to identify the differences and similarities of the users of both services in order to benefit from this acquisition. “Determine the overlap of current active members, who use both services. Create a unified login between both services, which makes it easy and transparent for the users to move from one service to the other without requiring a separate login. On the Tumblr side, create some free templates that add value and services between both sites that can link the brands,” he suggests. “The existing Tumblr users are accustomed to being able to setup free accounts and will likely be opposed to any overt costs being added to having a basic Tumblr account.” Moreover, Daniel believes that it is possible to increase revenues by making additional services available to Tumblr users and offering accounts, which give additional benefits from a basic account. “Find ways to leverage social networking value for companies, which would like to create accounts on Tumblr. Create a tiered membership for companies that will reflect the needs and benefits of having a Tumblr membership on an auto renewable monthly, 6-month or yearly account with an option for auto renewal as a default but opt-out of auto renew for yearly accounts,” he adds. “Create value-added options for integrating services and allow for auto-posting from selected topics of interest from Yahoo to Tumblr.” As Daniel also indicates, the Tumblr user-base is likely to be a younger demographic than the general Yahoo user-base. “For a small monthly fee, Tumblr users could add Yahoo services such as streaming music to their Tumblr account. The challenge is to identify opportunities to allow users of either services to enhance their experience by integrating services from both companies,” he notes. “Do some surveys for users of either company to identify additional options that would add value to their existing service and try to gauge their willingness to subscribe to some of these services for a reasonable monthly fee.”

By Idil Kan

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