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Yahoo Gets Tumblr, Geocities 2.0?

Its being reported that Yahoo has added another company to the list of acquistions since Marissa Meyer took over the reins. This weeks lucky cash prize winners are the good folks at Tumblr.

Tumblr is an easy to use blogging site with over 200 million users, or a user base equivalent to Yahoo's own.

Tumblr has been openly on the market for a little while now, it has run out of cash and with revenues of around $13m annually, was close to spending itself into oblivion.

Yahoo clearly hopes to turn that advertising spend around with its own platform, but a buy price of over $1b sounds like the bean counters there have taken leave of their senses.

Not least because up until a few years ago Yahoo already owned a popular, easy to use blogging site called Geocities and having failed to generate revenue through that vehicle shuttered the site in 2009, in the process cutting the ground from millions of user's personal blogs. That the closure of Geocities was tracked by Tumblr's rise seems to have escaped the attention of those at Yahoo.For anyone with a Tumblr blog there must be an element of concern here - it took ten years for Yahoo to take Geocities from a $3.5b acquisition to a shuttered service.

And things move much quicker now.

Its becoming clear that Marissa Meyer's plan for Yahoo is to turn it into Google Labs - but by buying in (rather than creating) as many services as possible, putting a Yahoo brand on them and hoping that one of them turns into a blockbuster success before the company runs out of funds.

Its an interesting strategy, but I just can't help feeling that beating Google is going to take more that just replicating its methods. Somewhere along the line actually building something new, exciting and profitable is going to be required.

Now, what are the odds on Yahoo acquiring a mobile platform next?


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