Yahoo has a demographics problem. Right now, as befitting one of the first big web properties, it has an older user base. Quite frankly, in web terms, Yahoo is ancient and its users are too old, too. Yahoo CEO Marissa Mayer wants to reverse that trend, and she’s got an idea of how to do that. Yahoo is looking to buy up Tumblr for a reported $1.1 billion dollars.
“One of our challenges is we have had an aging demographic,” admitted Yahoo CFO Ken Goldman. ”Part of it is going to be just visibility again in making ourselves cool, which we got away from for a couple of years.”
If they want to get young (and weirdly obsessed with Doctor Who), then buying Tumblr is the way to do that. However, a lot of folks are itching to get their hands on Tumblr, including Google and Microsoft. I’m not sure what good buying Tumblr will do for Yahoo, since most Tumblr users are already locked in to their social networks of choice and there’s not a great way to make money off Tumblr (except for maybe banner ads and sponsored posts, which will infuriate the users they’re looking to keep).
I’m not sure how Tumblr is worth $1.1 billion, but if I was Tumblr I wouldn’t turn my nose up at a big stack of cash.
Image: The OatmealTechnorati Tags: 1.1 billion dollars, blogging, ken goldman, marissa mayer, mergers, tumblr, Yahoo, yahoo looking to buy tumblr, yahoo to buy tumblr, yahoo to buy tumblr for 1.1 billion dollars