With its $1.1 billion acquisition of Tumblr, Yahoo on Monday made clear it plans to allow the blogging service to continue to operate as a separate business and brand. That includes no Yahoo branding on Tumblr. At the same time, the Web portal will look for ways to integrate advertising, search and content management on the back-end to bolster growth across both companies.
Maintaining a separateness while benefiting from the complementary strengths Tumblr provides is the balance Yahoo aims to strike. “I see this as a clear way to accelerate Yahoo’s growth in our core businesses,” said the company’s CEO Marissa Mayer during a Monday conference call on the deal.
Buying Tumblr is Mayer’s biggest gamble to date in revitalizing the Web portal after snapping up several mobile and other startups since taking the reins last July. For the first time, Yahoo owns a fast-growing social media property to challenge larger rivals like Facebook and Twitter.
With its younger demographic and mobile-focused approach, Tumblr also helps Yahoo in other key areas where it’s trying to gain ground. Mayer pointed out that Tumblr brings “great tools” for content creation, which Yahoo can use in connection with the revamp of its home page and other properties