Is Yahoo Trying to Acquire Tumblr?

If you want to talk about any social entity that has rivaled Facebook since it’s exploded, it would definitely be Tumblr. We’re surprised someone else hasn’t tried to acquire them earlier.

Tumblr, for those of you who have never heard of it, is a blogging platform that takes aspects of Twitter, Blogger and Facebook, and rolls them into one perfectly wrapped package. It’s not just a load of gifs of people having sex. It’s a place to inspire and be inspired. To wander and browse through 50 billion posts of endless images, thoughts, emotions and ideas. It’s a beautiful thing and takes less than one minute to sign up and join 107.9 million other blogs.

The six-year-old blogging network just recently began letting advertisers pay for prominent placement on the site and expects to make its first annual profit this year. On top of that, Yahoo is considering buying Tumblr, according to two separate reports on AdAge and AllThingsD.  Aging tech company Yahoo, which Marissa Mayer took over as CEO last year, seems to be trying their best shot at gaining the audience of young people.

Working to capture more young users, Yahoo is interested in reaching Tumblr’s 18 to 24-year-olds. According to Yahoo CFO Ken Goldman, one of the company’s challenges has been its aging demographic.

Considering Yahoo has only $3 billion in cash to spend on an acquisition, their aim is to snatch up the most popular network they can afford.

Yesterday, AllThingsD reported that the two companies were having “serious” talks about making a deal for $1 billion, which goes toe-to-toe with Facebook’s acquisition of Instagram. This could be just what Tumblr’s investors have been hoping for: a big cash out. But we think Tumblr is worth way more than $1 billion.

CNBC reported today that Yahoo will be holding a product-focused event in New York City on Monday and Marissa Mayer will be speaking. It’s not confirmed that this event is related to the Tumblr acquisition but their headquarters are, of course, based in New York.

Do you want to see Tumblr die at the hands of a dead weight like Yahoo?  It should be interesting to see how this unfolds.