Investors React To Yahoo’s Purchase Of Tumblr


Investors were positive if lukewarm on Yahoo’s plans to purchase Tumblr. Yahoo’s share price was up 1.22 percent early Monday to $26.85 in early trading.

On her Tumblr blog Yahoo CEO Marissa Mayer tried to calm investor concern about the impending merger by vowing, “We promise not to screw it up.”

David Karp will remain CEO at Tumblr, though there’s no word yet on how long he’ll be obligated to stay on after the merger is complete. With 300 million unique users every month and 105 million blogs, Tumblr has nearly 120,000 new registrations every day. As one of the fastest growing networks anywhere on the internet not screwing it up will be priority one for Yahoo both now and after David Karp’s management contract ends. With over half Tumblr’s user base on the mobile app and half of them accessing the site an average of 7 times per day, Tumblr may become the anchor application for Yahoo to expand its mobile reach.

At a more practical level Mayer promised to leave the product team in place and vowed to let Tumblr operate independently.

Yahoo will essentially pay all cash for Tumblr, using the proceeds of last year’s sale of half their stake of Alibaba.

While investors are cautiously optimistic, users are a bit more skeptical as summed by a Twitter post from Comedy Central:


There’s at least one petition opposing the deal and social media is alive with angst. It does seem like both organizations learned a lesson from Instagram’s fiasco earlier this year that had a profound though short-term impact on their traffic. In the fickle marketplace of the internet, alive with startups and new competition, one does not simply tell users what they want.

Overall I tend to side with investors that this is a good deal and one that Yahoo desperately needs to succeed. In the inevitable transfer of culture that will take place when any two large organizations merge, the best case for Yahoo is if Tumblr comes in and throws open the windows to let in a much needed draft of fresh, creative air into the dusty old hallways of Yahoo.

Find The Answers to All Life's Questions

This is a guest post by Squealer from Squealing Rat.


Getting answers to your questions is becoming an increasingly popular service to offer on the internet. Now there are several services that are different takes on this concept.

(David’s note: there are a couple of services here that are currently in an invite-only beta. We’ve gotten a few invites for each one to give to you, our wonderful readers. See the end of this post for how to score an invite – make sure to stay tuned, we’ll let you know when they go public!)

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Be a Roadie, Groupie and Fan with FoxyTunes

Music’s one of the many things I spend more time on than things I’m supposed to do. I love listening to music, discovering new music, going to concerts, watching videos and interviews, and generally living vicariously through all my favorite artists.

Thanks to FoxyTunes, that’s not such a waste of time anymore. FoxyTunes is essentially two things: a browser add-on and a music universe. 

The browser add-on, compatible with IE and Firefox (and Thunderbird, for Mozilla’s email client users), lets you control your music player from your browser. Change songs, find info about artists, and even sign everything from emails to tweets to blog posts with the song you’re currently listening to. (If you’re anything like me, this last point’s dangerous- Signing all my blog posts with “Hit Me Baby One More Time” might not garner much respect).

The other part, which integrates beautifully with but doesn’t require the browser add-on, is the music universe. You can either select the song you’re playing, or go to the FoxyTunes website, and enter a song name or artist. FoxyTunes will then scour the Web for you, and find everything you could ever want on that band or song. 

For example: I did a search for Matchbox Twenty, one of my all-time favorite bands. FoxyTunes found for me YouTube videos, music, song lyrics from Yahoo (the provider of Foxytunes), their music on Amazon and Rhapsody, Pandora music, as well as websites and information related to the band. Just about everything I could think to look for or need about Matchbox Twenty was pulled right into this one page.

Despite all the terrible stuff Yahoo’s going through, and the troubles they’re having, they continue to turn out some great products; FoxyTunes is one such great product. Especially when combined with the browser plugin, it becomes the source of information about the music you have and are listening to, and finally provides a way to bring under control all the time I spend learning about my favorite bands.

Check out FoxyTunes here, and download the Firefox or IE plugin here.

How do you find music, or cool music-related stuff? Let us know in the comments.

P.S. Happy Halloween, for my American brethren! I wanted to do a Halloween-related post, but apparently Web 2.0 and October 31 don’t really get along. Anyone got any scary Web stories?