Okay. We’ve had some time now since the big announcement to relax and consider: What does it mean? We all know about Yahoo! and their continuing struggle to remain relevant. Really? Honestly, as far as top-of-mind relevance is concerned, that ship has sailed for Yahoo!, in my opinion. However, I do recognize that my personal experience is not the same as others’. And I know that Yahoo! is working hard to turn itself around. Hence, tumblr.

An interesting phenomenon is working now in driving (social) media. And it’s a variation of an age-old story in the business of innovation: the innovators often get left in the dust as the industry matures. Not always true, but true often enough that it bears remembering. Savvy leaders have the vision and foresight to be sure that their organization is positioned for where the market and the industry are headed, not where it stands today.

So perhaps there are a couple of things at work here in the Yahoo!/tumblr. deal and in the social media industry in general. One, we hear tell that some big social media platforms (e.g., Facebook) are slowly losing their appeal to younger audiences, which makes sense. I don’t imagine I want to be hanging out on a social media site where my parents are! And two, and I think this is critical, the media aspect of the business is the key to growth in revenue. So while Amazon is producing TV shows (yup, they are) and Comcast owns a giant broadcast network, traditional digital media  , i.e., Yahoo! has to find the niche that keeps it relevant. This is the MEDIA business in the 21st century, folks.

Let’s discuss Yahoo!/tumblr. shall we?

1) What the heck is tumblr.?

2) Yahoo! plans to ‘let tumblr. be tumblr.’ Good idea? Why or why not?

3) Where is the value in this acquisition?

4) Does the tumblr. acquisition make Yahoo! more hip? Or tumblr. less so?

5) How and when should tumblr. be expected to pull some revenue weight for Yahoo!?

6) Do you think tumblr. subscribers will jump ship? Where will they go?

Image credit: slamxhype.com

Sources and suggested reading:

http://www.mercurynews.com/business/ci_23366227/tumblr-deal-reflects-social-medias-need-stay-hip

http://www.forbes.com/sites/quora/2013/06/03/since-yahoo-is-going-to-let-tumblr-be-tumblr-what-are-they-actually-gaining-from-the-acquisition/

http://www.techhive.com/article/2040358/yahoos-tumblr-rolls-out-desktop-dashboard-ads.html

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