I’m not suggesting that they wouldn’t get there on their own. They say, ‘We’re already doing it with Facebook, we’re already doing it with YouTube, we’re already doing it with Twitter… How many more do we have to do?’ So it’s been hard for Tumblr. And I think he really believes that matching it together with the Yahoo platform gives him the ability to take what he has built a ton of commitment and passion around and continue to grow it within the construct of Yahoo.”Īccording to Mashable, he said that marketers haven’t been receptive to Tumblr’s native ad offerings: “He was at a crossroads where he could have raised more money or he could have done this deal. “I view this as fundamentally David’s decision,” John Borthwick, the CEO of Betaworks and one of Tumblr’s earliest investors, tells Fast Company.
None of Tumblr’s stakeholders would bemoan one of the largest exit in New York history, but there will always be a question of what the social microblogging service could have become as an independent company. Yahoo plans to acquire Tumblr for $1.1 billion just as the startup was starting to see profitability on its horizon. What Tumblr’s Stakeholders Think About Yahooįounder David Karp has a massive advertising challenge ahead, most say, and that (plus 1.1 billion other reasons) is why he made a smart choice in going with Yahoo.
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