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David Karp’s decision of selling Tumblr did not meet with the positive public opinion. Some people cannot understand why he would want to get rid of such a promising business, but he had his ...
David Karp’s decision of selling Tumblr did not meet with the positive public opinion. Some people cannot understand why he would want to get rid of such a promising business, but he had his reasons. First of all, Tumblr needs a COO and cash to keep running and growing. Moreover, the blogging portal does not generate sufficient revenues. Selling it to Mayer solves all those problems and of course makes David Karp rich enough to live off the interest.
Yahoo! has also broad perspectives after the transaction. Tumblr would allow it to reach huge young audience and reinvigorate the image of the company. It is expected that Tumblr will expand Yahoo!’s audience by 50% and to grow traffic by approximately 20%. What is more, Yahoo! has limited mobile reach and mobile usage and nowadays the trend of accesing the Internet via mobile rather that computer is growing. Having Tumblr gives Yahoo! huge opporunities on that field, because more than half of Tumblr’s mobile users use the mobile app on an average of 7 sessions per day.
Both Marissa Mayer and David Karp want to reasure Tumblr’s users that joining to Yahoo! will give the blogging portal more resources to develop and provide its community the product they love.