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Yahoo acquisition of Tumblr and Hulu

There were some industry analysts who were a little surprised by this news, because they thought that Yahoo had decided to purchase Hulu. While it did seem that Yahoo was leaning towards a Hulu acquisition, it seems that in the end the company decided that Tumblr was a better fit for their future goals and portfolio, although it may still end up acquiring Hulu.

Another reason Yahoo may have purchased Tumblr instead of Hulu, is because they feel it gives them a better online advertising platform. As most know one of the fastest growing revenue generators on the internet is online advertising. Although an acquisition of Hulu would have provided Yahoo a lot of online revenue potential, Tumblr probably has a greater revenue outlook.

A purchase of Tumblr will also provide Yahoo a first true blogging platform. Along with online advertising, blogging is also a fast growing sector of the internet. In order to increase and maximize its online advertising revenue potential, all Yahoo will have to do is to add some features and redesign the current Tumblr platform. Another benefit for Yahoo in making this purchase, is that Tumblr is already a popular blogging platform so it has a built in audience. As a result, Yahoo won't have to spend millions of dollars in marketing campaigns to attract users. Yahoo will however have to convince current users that they plan to continue making Tumblr a user friendly blogging community.

Overall Yahoo has received positive comments and feedback regarding this potential acquisition.

It looks like this acquisition positions Yahoo CEO Marissa Mayer as a serious industry player. Ever since she was appointed CEO, industry analysts and Yahoo stock holders have been patiently waiting to see what type of leadership and changes she would bring to the company. Prior to news about this acquisition, the most recent media publicity about Mayer was her executive decision to eliminate telecommuting at Yahoo. Although the news stories about this was not necessarily considered negative, I think it is safe to say that these stories did nothing positive for Yahoo or her image.

Now that this story is behind her, Mayer seems ready to focus on more business acquisitions and Yahoo's financial future. This includes developing another revenue stream for the company through online advertising. It is estimated that the Tumblr acquisition could potentially generate millions of dollars in online ad revenue for Yahoo.

It will be interesting to see how some of the other major technology companies like Facebook and Google respond to this potential acquisition. Will it prompt them to make additional acquisitions? Or, will it prompt them to expand their online advertising strategy with their existing sites and platforms. 

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