Article by Pierre Zarokian

If you haven’t heard, it’s rumored that Yahoo is going to buy out Tumblr. The growing site is a huge attraction to young people, something that Yahoo wants a piece of. However many critics of this deal fear that this is going to be the end of Tumblr. Tumblr’s success can be attributed to how CEO David Karp has steered away from traditional advertising and embraced user anonymity. However CEO Marissa Mayer of Yahoo reassures Tumblr fans that Yahoo won’t be branding on its potentially acquired site for 1 billion dollars.


Tumblr has enjoyed much success over the years. But although they boast 300 million visitors a month, 120,000 sign-ups a day and 900 posts per second, advertisers might not find much use for it. This is mainly because Tumblr refuses to reveal the real identity of their users. However, Yahoo with its 825 million dollar profit, Karp finds it to be a great business partnership for both sides. Yahoo’s Chief Financial Officer Ken Goldman says that profits from the deal are intended to increase by next year, with the deal expected to close in the next 6 months or so.

Yahoo Chief Financial Officer Ken Goldman said that while the deal is not expected to add much to Yahoo’s results this year, he forecasts material gains in both profits and revenue by next year. The deal is expected to close in the second half of this year. Both Yahoo and Tumblr fans anxiously await the closing of the deal and anticipate how it will affect the user experience on both sites. Many fear that this is the end of Tumblr despite what Mayer and Karp claim, but only time will tell.

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