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Yahoo buying Tumblr for $1.1 billion, vows not to screw it up

The Yahoo Company will published on the blog service's QQ space Share as the cash of $ $ 110 000 000 of the to buy the media platform of the a much-needed socialization of, to the the a pioneer in the the Internet of to achieve the the younger generation of the user, its ailing brand to inject new the vitality of into the.
The transaction was announced on Monday that, Yahoo Chief Executive Officer of Melissa · Meyer (Marissa Mayer) in order to the the revitalization of the company co-opted the one-Web attribute with the powerful visitor traffic, but the people earning less a bold bet.
The a combination of of Yahoo and Tumblr create an online powerhouse, there are about 10 million users, which will to attract more advertising customers, and to help the the longer period of time by the Yahoo to maintain of the the of tourists of its properties, Meyer told the Reuters reporters in an interview.
"The QQ space to share the aspects of of the users and traffic immediately for our growth story," she said.
Analysts said, Yahoo seems to has never been business recorded a Profit for the flower money wasted, making the a small part of of Yahoo's sales, may not significantly contribution to the annual income of. But the The company refused to the by the Government of France, when the it attempts to to pay the the earlier this year of the 100 million US dollars of the video site Youku, there are to do something to inserted into the the the the efforts of of the a hole in in its social media.
Yahoo made it clear, it is to worry about it may damage the the QQ to share space on the sensitive of disrespect or more enterprises to.
In a statement, Yahoo, said: "in accordance with the agreement, we's commitment to, do not messed up the will be independent of as a going concern for the, QQ space Share as a separate business,".
The deal will make David · Karp,, founder and Chief Executive Officer of of of of Tumblr's,, on the 26th, a multi-millionaire.
Tumblr is the of the most popular in the a on the network the so-called user-generated the contents of the hub, to to attract young people to Who use of the platform release the pictures and text. It has more than 100 million, in its network blog, from the "Caucasian (white) man wearing a the the the the glass of the Google" - ridicule the early adopters of wearable the the a collection of photos - housing of of the computing devices-as the focus of "the worst of the-Free Room Available."
While Yahoo is still is the one of the of the the most popular destinations in the on the network, It has been seen the its revenue has shrunk in recent years, With the transaction of the consumers and the favor of advertisers competitors such as Google Company and Facebook the company's is expected to will increase by 50%, Yahoo of the audience.
Of the acquisition of, which will use the Yahoo's $ 540 million U.S. dollars of the cash and marketable securities one-about one-fifth of, is the the reins of the the world's largest so far Meyer in July with the the Yahoo's business and Web traffic to reverse the prolonged decline in the the target.
RBC Capital Markets Mark ·, an analyst at Mahaney (Mark Mahaney) saying that it was a "the long-shot/long-term of investment", but integrate into the Mayer's turnover strategy.
In a report, Mahaney, said: that the "(Yahoo's) fundamentals are has been poor in of the for many years, in part because is the social and mobile of the the lack of the company's. In the QQ space Share (Yahoo) can be help developers the Such a presence,".
The RICH premium
Although Tumblr is in the affirmative - It has a the millions of in the United States the monthly independent Visitors - analysts questioned, a what kind of contribution to, it will make the Yahoo's income, in because to the ads on your site is the in its infancy.
There are media reports has been linked to the 2012-year revenue of the Tumblr $ 13 million. This home-privately held company, is headquartered in Manhattan, non-disclosure the its financial results.
Yahoo is expected to, QQ space Share will help to improve the income, to the in 2014, Ken Goldman Sachs, Yahoo Chief Financial Officer said that in the call with analysts. He did not provide the the specific numbers.
BGC Financial Colin, an analyst at Gillies, said: "even if the income for the $ 10,000,000,000, This means that Yahoo to pay the the income of of 10 times,". "10 times is the what you pay for the beautiful women of the by far the ball. Outside the-band of the M & A"
Yahoo can be quickly improve the the a combination of of the income of the Tumblr Web site, has its own sales team, Brian · Wieser, analyst of the the hub Research Group's, said. However, the to load the QQ space Share banner ads potentially alienate the its users, may not provide the a significantly improve the the overall income of the Yahoo's, he said.
Wieser said: "At present is not clear the deal there will be conducive to the from the the the the perspective of of the capital rate of return of view,". "One hundred million (U.S. $) as one of the company, is the a big bet."
Gillies and Wieser in the Sunday into the the line contact with, the published online all the things are reported in the after the the completion of the transaction D.
Meyer in the the on a conference call, introduced the Tumblr the processing exception to the situation, and and said that, Yahoo and there is no the inevitable the planning a lot of similar in size to transactions.
Yahoo already for you to cough up the a considerable number of money to buzzing it is worth one of the start-ups by keeping committed of several companies. On Facebook bought a of the $ 1 billion in the Instagram of the popular social networking Media Pictures website to U.S. dollars the last year of. In the In 2006, the the Google to spend the $ 160 000 000 for the YouTube.
The Yahoo 's the acquisition of record is tinkering. $ 3 billion U.S. dollars, is the coupled with on the purchased Geocities - organized by for a free service that once among the the most trafficking in Website - the the the most obvious the failure of transactions in the between the the grandstand for the the consumer's personal Home. Yahoo in 2009 close the service.
In the an interview with the Reuters in an interview, Meyer, said: "This is not lose to me,, there are some of the of the to to do a large-scale offer in Yahoo's history is not smoothly,". She said that that the Yahoo There is now a completely different management team, is committed to to makes the the Tumblr's processing work.
Tumblr's team will stay to in New York, Meyer pointed out that the, in part because is her think that the to of the most successful transactions, such as the acquisition of YouTube of the Google, in the the the vigorous development of of Internet industry, so that the the company's operating to be the acquisition of move somewhat independently.
Yahoo shares rose 27 cents, or 1%, A 26.78 US dollars in the the transaction of the afternoon. Through the the Friday's closing price, the and its shares are has accumulated rose 70% of the, because the Meyer become the CEO.
The issue of image
A problem: Yahoo may had to deal with is the reputation of of Tumblr as a a home for the of pornographic blog. At one point on the, in 2009, about 80% of the the top-level Web site of of the Tumblr there are things to do of the of adult the contents of. Today, this figure is close to 5%, According to the Do not in the data, but the old image is rally to the cause.
In the the on a conference call, statements were made by the representatives of Meyer, brush off the QQ space Share content, may not be able to to attract the the Concerned about the of the advertisers, the said the ability to reaches the more people is the "real exciting." She said, Yahoo's positioning tool will allows advertisers to customers zero in on the specific group of people and content.
One place, Yahoo plans to to enhance the advertising: Tumblr of the instrument panels, the main landing point, is similar to the news source.
Processing and and other issues, it may will dropped to Karp, who was was founded in in 2007, QQ space Share will remain Chief Executive Officer.
Karp, the programmers of a self-taught, who leave the high school is conducive to family education, did not take the part of the in the the conference call of the Mayer's. There are media reports had suggested that he to take sales QQ space Share up to 200 million yuan.
In the the when the an interview with of the 2012 "The Guardian", the Karp seems to little interest in the money than in the Tumblr of the prominent.
"There is are a lot of wealthiest people in the world, there are a handful of people Who invented of the things, the number of of billions of people the the privilege of used," he said.
 
 



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