Tag: tumblr

Tumbler has fallen

Tuesday, 13 August, 2019

Verizon bought Tumblr in 2013 for a reported $1.1 billion, just two years after its massive $4.48 billion Yahoo acquisition in 2017.

Yesterday, Automattic (parent company of WordPress) bought Tumblr for a reported $20 million.

Founded in 2007 as one of the first microblogging services, Tumblr had its moment in the sun when it became famous for its porn services, but that was then. Automattic chief executive, Matt Mullenweg, confirmed the acquisition in a post on his personal Tumblr account and hinted at a fork towards fun: “When the possibility to join forces became concrete it felt like a once-in-a-generation opportunity to have two beloved platforms work alongside each other to build a better, more open, more inclusive &mdash: and, frankly, more fun web. I knew we had to do it.”

Let’s hope Matt knows what he’s doing here.


Yahoo and the end of Web 1.0

Thursday, 28 July, 2016 1 Comment

More than a billion people now check Facebook on their phones every single day. The social network revealed this new milestone last night when it released its impressive second-quarter earnings. What’s that got to do with Yahoo and the headline on this post? Well, context is important. Consider these stats:

Facebook now owns a $17-billion-a-year mobile ad business. In the second quarter, mobile sales made up 84 percent of its $6.24 billion in advertising revenue. Overall, the social network reported $2.05 billion in profit, up 186 percent year-over-year, on $6.43 billion in total revenue, which rose 59 percent compared to the same period last year. And Facebook ended the second quarter with 1.71 billion monthly active users.

Which brings us to Yahoo, which was was acquired on Monday by an American telephone company, Verizon, which paid $4.8 billion for the brand and its internet properties. The cause of this ignominious end was simple: Yahoo became irrelevant for adults quite some time ago, and young people don’t use it at all. They spend their time now on Instagram, Snapchat, WhatsApp, Spotify and Facebook.

Yahoo’s major missed opportunity was the rise of the mobile web. That failure had a lot to do with the short stint as CEO of Scott Thompson, who departed in a cloud of controversy. Distracted by its internal troubles, the company took its eye off the ball, as it were, at a critical moment. Thompson was replaced in July 2012 by Marissa Mayer, who bought Tumblr for a billion dollars in an attempt to attract younger internet users. A blogging platform is not what the yoof wanted, though.

Note: Yahoo had the chance to buy Google for $1 million and Facebook for $1 billion.

The new benchmark is that more than a billion people check Facebook on their phones every day. The old benchmark was Yahoo’s directory of websites and this week began with the purchase of the gravestone. Yahoo belongs, with the rotary phone, to another era, and its departure marks the end of Web 1.0. Those riding high on the Web 2.0 wave now should remember, however, that “the bubble fame” does burst and voice-based interfaces on devices such as Amazon’s Alexa are moving the web beyond browsers and smartphones. Blink, and you miss it. Yahoo fell asleep and its legacy includes happy memories of the “Site of the Day” feature. The web was young then. It’s mobile now.


Biggr. Flickr.

Tuesday, 21 May, 2013 0 Comments

This is turning into a significant week for Yahoo. And it’s only Tuesday. First up was Marissa’s acquisition of Tumblr in a $1.1 billion cash deal, and now comes a new-look Flickr with a free terabyte of free space. How big is a terabyte? Well, you could take a photo every hour for 40 years and you still wouldn’t fill a terabyte with your snaps.

flickr

In keeping with our Instagram times, the Flickr emphasis is now on images — full-resolution. Words are few and far between and the homepage is clean and visual. The other big meme of the day is social and the new-look Flickr allows users to push photos out to Facebook, Twitter, Tumblr or Pinterest.


Exit Tumblr followed by $1.1 billion

Monday, 20 May, 2013 0 Comments

“The exit, one of the biggest New York has seen shows that with content becoming important, New York is finding its footing on the startup stage.” That’s Om Malik writing about “What Tumblr’s sale means for New York startup ecosystem.” Later, he adds: “It would be one of the biggest exits for a New York-based startup. Sure there have been other exits — Google paid $3.1 billion for DoubleClick, but that was a company that belonged to a different Internet era.” Those not used to seeing “exit” used in this context need to brush up on their venture capitalist (VC) vocabulary because the “exit strategy” is how a VC intends to get out of an investment, profitably. The exit is a way of “cashing out” an investment via an initial public offering (IPO) or being bought out by a bigger player, such as Yahoo. It’s also referred to as a “harvest strategy” or a “liquidity event”.

One of the early investors in Tumblr was Union Square Ventures of which Fred Wilson is a managing partner. Along with being a famous VC, Fred is a famous Bob Dylan fan and those in the know knew that a deal was almost done when he posted “Don’t Fall Apart On Me Tonight” by Dylan on his Tumblr blog yesterday. And it didn’t.

So why is Fred Wilson cashing out and David Karp cashing in so handsomely? “The world is atwitter about Tumblr’s big exit to Yahoo!” says John Battelle, who claims it’s all about advertising, especially “native” advertising and the “activity stream”.


Happy Birthday! 10 this year

Wednesday, 9 May, 2012

The Rainy Day blog is 10 years old this year. What began on 1 May 2002 was inspired by the outrage that followed the 9/11 terror attacks on the US, much of which found expression in blogging. The format was still young back then and becoming a blogger was, if not quite subversive, adventurous and […]

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