Tumblr Sold to Yahoo

The recent acquisition of Tumblr by Yahoo has been on everyone discussion list in recent days.

 Despite all the hype surrounding the sale, one key point is being largely overlooked in the analysis.

It is fairly clear that Tumblr's owners sold the renowned network because the company could not generate the amount of revenue that had been predicted with the advent of native ads last year. 

After earning only a modest $13 million last year from its beloved Radar spot, this year Tumblr has continued to struggle and the rumors have been that it was in fact struggling to pay its bills.

Based on this, it is not surprising that management decided to offload Tumblr.  In a conference call this morning, Not surprisingly Yahoo CFO Ken Goldman said that there were only modest expectations for revenues growth  during the balance of 2013. 

Tumblr’s ongoing inability to capitalise on the full potential of its site, is difficult to understand because on paper Tumblr has much to offer potential advertisers including a passionate and engaged community and a fully functional and elegant a beautiful interface  Despite this it has been speculated that only a few percentage points of its available advertising space. 

Suffice to say it will be interesting to see what  strategies and tactical refinements Yahoo is planning to adopt to help ramp up these disappointing results for Tumblr in recent times.

And until next time, good luck and good marketing.

Regards,

Daniele.