Yahoo is old and stale, some say. The Internet doesn’t want banner ads, or any ads for that matter (what has been among the search giant’s core business). But there may be something still hip about Yahoo: its social network and blogging site called Tumblr.
Tumblr, which has seen big user growth since Yahoo acquired it in 2013 for $1.1 billion, could be a cornerstone of any deal for the company’s Internet business. Yahoo’s board is currently meeting to weigh strategic options for the struggling company. Up for consideration: the fate of CEO Marissa Mayer; what to do with 384 million shares of Chinese e-commerce giant Alibaba; and whether to sell or spinoff Yahoo’s core Internet businesses, which include search and display advertising services, the Yahoo.com portal and subsites, and Tumblr.
Tumblr wasn’t Yahoo’s first acquisition, nor its last. But unlike the startups the company has shuttered, such as Jybe, Sparq and Vizify, Tumblr lives on. It boasts 550 million monthly active users. That’s up from the 300 million monthly actives Tumblr had in 2013. As to its worth now, analysts cannot quite peg it without certain statistics and financials that Yahoo hasn’t broken out. .. see more