Tag: Yahoo!

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.


Does capitalism work? Ask Jan Koum.

Thursday, 20 February, 2014 2 Comments

Jan Koum was born in 1977 and raised in a small village outside of Kiev. The family home had no electricity or hot water and his parents rarely talked on the phone in case it was tapped by the state. At 16, Koum and his mother immigrated to the US, where she took up babysitting and he swept the floor of a grocery store to help make ends meet. When his mother was diagnosed with cancer, they lived off her disability allowance. When she died in 2000, the young Ukrainian was alone in America; his father had died in 1997. He taught himself computer networking by buying manuals from a used book store and returning them when he was done. He got a job a Yahoo but in his LinkedIn profile, he unenthusiastically describes his time there with the words, “Did some work.”

He left in September 2007 and spent a year traveling around South America. On his return, he applied, and failed, to find work at Facebook. In January 2009, he bought an iPhone and realized that the seven-month old App Store was about to generate a whole new industry of apps. His thinking was it would be cool to have a free messaging app where the login was your own phone number. Koum chose the name WhatsApp because it sounded like “What’s up,” and a week later on his birthday, 24 February 2009, he incorporated WhatsApp Inc. in California. Yesterday, Jan Koum signed the $19 billion Facebook deal paperwork on the door of his old welfare office in Mountain View, California. (Photo courtesy of Jan Koum)

Jan Koum


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”.


How those Yahoos! destroyed Flickr!

Wednesday, 16 May, 2012

In one of the best articles of its kind for many a long day, Mat Honan of Gizmodo exposes corporate stupidity on a staggering scale in a piece titled “How Yahoo Killed Flickr and Lost the Internet“. Money quote: “There’s a difference between a missed opportunity and a complete fuck-up. When Yahoo failed to capitalize […]

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