Tumblr acquired by Yahoo in 2013 for $1.1 billion, gets sold to WordPress for < $20 M in 2019. Thoughts?

Google sbsjsj
Aug 13 309 Comments

What went wrong here? Facebook did a good job with Instagram. Microsoft did a good job with LinkedIn. Was Tumblr overvalued at $1.1B ??

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TOP 309 Comments
  • WeWork / Eng rawrggggle
    Marissa Mayer was the problem
    Aug 13 41
    • Kaspersky Lab / HR mayfair
      Yahoo stock was $15.69 when she started, and she cashed out shareholders with Verizon deal at $55.71 per share. So all shareholders who bought yahoo stock when she started and sold it to Verizon made more than 300% within 5 years.
      Aug 14
    • Kaspersky Lab / HR mayfair
      Of course, Alibaba shares were part of it big time, but really yahoo didn’t have a chance, they fell too far behind competition and didn’t have any new ideas. So she focused on making money for shareholders and herself. I don’t think there was a better strategy.
      Aug 14
    • Kaspersky Lab / HR mayfair
      I’m not sure about Mary Barra though... I don’t see lots of progress for GM with her.
      The best performing female CEOs are
      Marilynn Hewson from Lockheed Martin, Debra Cafaro from Ventas and Nancy Mckinstry from Wolters Kluwer.
      Aug 14
    • Tableau MadoeYadoe
      Diversity apparently means never saying anything bad about women. She fucked up, get over it. If she were a man then guess what, he still fucked up. Can’t wait for this fucking snowflake PC cycle to be over and done with, reminds me of the early 90s. Everyone is already burned out from all the whining and having to walk on eggshells with fucking pronouns and labels. It’s no wonder president orange got elected. You’re all so caught up in your woke bubble that you think anyone outside of it gives a shit or that there’s any consequence for saying anything mean to or about anyone. There are no laws against hurting feelings, hate to break it to you.
      Aug 14
    • Netflix pots
      Yes we deserved trump, people are tired of this nonsense and tired of being called misogynist racist sexist every time
      Aug 14
  • Uber / Eng
    ABT5

    Uber Eng

    PRE
    Uber
    ABT5more
    It’s amazing that Wordpress is still alive
    Aug 13 24
    • VMware / Mgmt engy1
      Did someone just say they are "surprised" that WordPress is still alive {blink} {blink}!! Get your facts right. If you are only reading about Tech and Business and a few topics common to Silicon Valley, you WILL think Medium is cutting it. Get your head out of the bubble and look outside... Most people don't even know Medium. And I publish on Medium... heavily. So I am not biased. But my WordPress site gets 500% more traffic than Medium blog. And yeah, payvwall sucks.

      WordPress and blogging are very much alive and kicking butts.
      Aug 13
    • Google emc2too
      Many sites are built on wordpress. You won’t notice it. It is not about blogging. Try /wp-admin if you suspect
      Aug 13
    • Adobe
      alivegirl

      Adobe

      PRE
      Amazon, IBM
      alivegirlmore
      Just use wappalyzer to see which sites use WordPress
      Aug 13
    • New / R&D Mdk25
      Didn't Wix replace WordPress or something?
      Aug 13
    • Microsoft ughhhhhhh_
      Wix is a crappy WYSIWYG website builder, proprietary and commercial. Definitely did not replace WP.
      (I just realized I haven’t used the word WYSIWYG since 2004 😂)
      Aug 14
  • Zillow Group multipass
    Leadership always is the main problem
    Aug 13 0
  • Turo / Data Rhok'delar
    They took away our hentai and furry porn. Never forgive, never forget.
    Aug 13 4
  • Amazon / IT
    drtY01

    Amazon IT

    PRE
    Amazon
    drtY01more
    Terrible content + lack of popularity + Marissa Mayer = Your app goes to shit
    Aug 13 7
    • Zendesk kalikwake
      PrObABlY bEcAuSe ShE hAs a VaJeEn, is that what you want to hear Xero? Can you call me a fashy fascist and get your good boy points for the day? Lol
      Aug 13
    • Facebook BlindBndit
      Marissa Mayer was an incredibly incompetent CEO; it has nothing to do with misogyny.
      Aug 13
    • MassMutual / Eng
      NkOS62

      MassMutual Eng

      BIO
      Lead Software Engineer
      NkOS62more
      "Everyone back into the office, you're incapable of working from home." - Marissa Moron

      🖕

      Instant resignation from me. I'm more productive at home & work longer hours.
      Aug 13
    • New / Admin
      HNSC00

      New Admin

      PRE
      uShip, Dell
      BIO
      I am a Business Lead / Exwcutive Assistant that supports cross functionally across all internal teams. people ops, biz dev, culture dev, policy implementation
      HNSC00more
      My CEO is threatening to take away the perk of working from home because we had a major client leave.
      Aug 13
    • Marissa Mayer was a failure in everything she did in business. She was lucky though and had good connections.
      Aug 13
  • Uber 1233
    Marissa Mayer, the shittiest CEO of all times.
    Aug 13 11
    • eBay forjdid
      Carly came onto the Titanic right as it was heading for a berg. She set the gears in motion to turn it around, then just as it was starting to turn, they brought Hurd in and he got to take credit for the success. Then he proceeded to literally take all invention out of HP, ruthlessly cutting every budget penny in order to get an extra short-term stock bump, right before he exited with a fat package. HP and its employees never recovered from what Hurd did to it/them, but everyone likes to blame Carly.
      Aug 13
    • Box Aceulus
      Dara seems to be running a close second
      Aug 13
    • Microsoft NyjvyhypoW
      I had two family members who worked at HP and they believed Carly was a horrible CEO. Bad acquisitions, decreased benefits and long stagnation/decline. Having heard those conversations for years makes me feel like any positive light on her is revisionist history.
      Aug 14
    • Amazon Vulgar
      Carly was “Wrong a lot”. Yeah there was structural rot at HP at the time, but it was one of the greats and yeah Hurd gutted it the same way IBM got gutted for quarterly earnings.
      Aug 14
    • New / Eng
      WscU36

      New Eng

      PRE
      LinkedIn, Yahoo, Oracle
      WscU36more
      No one comes near close to second
      Aug 16
  • Box Aceulus
    Tumblr did not not grow is what happenened
    Aug 13 6
    • Amazon buckshot
      Lmao exactly.
      Aug 13
    • eBay / Eng
      mDBW53

      eBay Eng

      PRE
      NVIDIA
      mDBW53more
      They got taken over by cancerous progressives that ran everyone else away.
      Aug 13
    • Red Hat ofxts
      LOL they were always full of progressives
      Aug 13
    • SolarWinds AnEngineer
      Do you know why websites full of conservatives never become very popular? Because they'd be absurdly boring.
      Aug 13
    • Square ygkotsf
      They got rid of porn bc Apple threatened to kick them off the App Store
      Aug 13
  • Monster unholy!
    Have you seen the content on Tumblr? 😂
    Aug 13 0
  • Google / Eng
    sqrt(-1)

    Google Eng

    BIO
    Top Contributor or GTFO
    sqrt(-1)more
    Buy high, sell low, profit.
    Aug 13 3
    • SAP / Eng BillyMD
      i
      Aug 13
    • Expedia Group / Eng cbMy22
      You may not immediately profit on individual deal, but you'll make it on volume.
      Aug 13
    • New / R&D Mdk25
      Definitely profit for the guy you bought it from...
      Just saying ...
      Aug 13
  • Netflix pots
    Marissa made hundreds of millions of dollars- she doesn’t care. Power to all women!
    Aug 13 10
    • IBM vmQm65
      Fuck it! Give me $50 million USD I'll send you pictures, videos and anything else you want about foot fetish's
      Aug 13
    • Google Devil
      VmQm65 you can send me instead for free as a social service
      Aug 13
    • Procore trumpnevr
      Truth is women are given leadership positions of failing business so it’s an uphill battle. Don’t make it a woman issue.
      Aug 13
    • GoDaddy / Eng Iajl65
      It is not an woman issue, it was a Marissa issue, she burned almost US$ 3Billion in acquisitions
      https://gizmodo.com/heres-what-happened-to-all-of-marissa-mayers-yahoo-acqu-1781980352
      Aug 13
    • Procore trumpnevr
      ☝️”pots” is trying to make it a woman issue
      Aug 13
  • Google !!!!!!!!!
    When they were on the brink of shutting down and got acquired, they weren’t going into the hands of people that wanted to innovate and grow them. The founders basically gave away the kid to parents that just wanted it for the tax claim. Yahoo! saw Tumblr as an opportunity to push ads and reach a young demographic, but stripped everything that made it an interesting place as well ceased innovation. This is what Yahoo! does with social network acquisitions (Flickr fell like this too). Because if anyone who bought Tumblr was trying to innovate it, they would’ve had an answer for Snap, Instagram, and communities like Twitter. I think it’s fair to say that Instagram is the new Tumblr in nearly every way
    Aug 13 6
    • Amazon 🗑77
      I am genuinely curious about the statement, “Instagram is the new tunblr”. Not trolling, but can you explain?
      Aug 13
    • Google sbsjsj
      OP
      I think what !!!!! Meant is that when Tumblr was at it's peak, it was used to consume small blogs or chunks of info. Today an average user gets the same via Instagram, something about nature, cars, travel, tips or whatever. Like if you were to map out a user's needs in a day, the part that flocked users to Tumblr is now directed to Instagram.
      Aug 13
    • Google !!!!!!!!!
      Yep, @svsjsj summed it up correctly. Tumblr at its best figured out how to be the main conversation, as well as how to make itself a platform for profiles and blogs, and different nascent forms of messaging (private messages, now dms; pollls and and questions), like reblogging (now retweets and shares). This started the trend of moving away from having a blogger site or wordpress site. Instagram figured out how to be the new wave of this, where some people and companies have instagram accounts instead of websites.
      Aug 13
    • Amazon i9ju7u
      I feel like maybe it was taking down the porn that had a bigger impact. Disclaimer, that's the only reason why I used tumblr websites
      Aug 13
    • AdRoll ipopwc
      I think Twitter’s launch of Medium didn’t help anything either.

      Anyone who was using Tumblr for the image sharing features had instagram to turn to, and anyone using tumblr for the nice, easily shared text/blog functionality just switched over to Medium.
      Aug 13
  • Amazon zAUt44
    They blocked porn on Tumblr 😂😂
    Aug 13 7
    • Salesforce mb0
      Yahoo bought tumblr. Verizon bought yahoo. Tumblr’s content conflicted with Verizon’s archaic culture/beliefs. Point blank. I worked for a very high ranking L2 and remember seeing a meeting scheduled on removing all NSFW content on tumblr.

      The next two weeks, they had started comms that they’d decommission all NSFW content aka porn from the site.
      Aug 13
    • Microsoft bloodbath
      I agree
      Aug 13
    • Automattic dascode
      The porn ban narrative was likely the nail in the coffin, but not the main contributor to the decline. Check out this graph of new posts per day: https://twitter.com/somospostpc/status/1161024458460712962
      Aug 13
    • Amazon ofbsyckeba
      Now let’s go to Twitter for that 😃

      Is Verizon republican?
      Aug 14
    • Pivotal Axe Cap
      I think it has more to do with them being archaic as in IBM than politics.
      Aug 14
  • Yahoo InParis
    Tl;dr advertisers didn’t understand Tumblr, it was too complex to get set up to start running ads, Yahoo didn’t have the diversity of advertisers to support Tumblr, and most advertisers didn’t want to risk having their brand show up next to porn.

    Longer version
    Instagram only had images when they started to monetize it and advertisers had a really low bar to entry to start running ads: Create a profile and post a cool picture with a short description. Tumblr had a bunch of different types of posts, from quotes to full articles to video, and they really tried to encourage content creators and advertisers to have really curated, creative spaces. Stated differently, Tumblr wanted advertisers to turn their blogs into fully curated homes on the internet. Most brands/advertisers were typically outsourcing their “social” advertising to agencies and other 3rd parties and maintaining a Tumblr presence was expensive and didn’t provide the best ROI. Karp was able to keep a fair amount of autonomy with product direction, but not sales. With his autonomy he pushed back and prevented simplifying the advertiser’s experience for Tumblr, which ultimately killed adoption. Moreover, Yahoo only had a limited number of advertisers who were advertising with them and most of those advertisers were really big brands. Facebook had over a million different advertisers who were already set up to run on FB and it was fairly seamless to start introducing that demand into the Instagram supply—lots of the demand was smaller business who loved having their ads show up within Instagram. Finally, add in the risk of ads being shown on a Tumblr user’s dashboard surrounded by porn and it was really a tough conversation for our sales force.
    Aug 13 2
    • Microsoft GoLongElon
      Sounds like Karp didn’t understand Tumblr if ads was the most creative model he could get going
      Aug 13
    • Verizon Media boybbn
      Don’t blame porn for the failure. Sexual pleasure is a multi-billion industry. It is not like YouTube branding issues where ads appear next beheadings
      Aug 14
  • Nutanix saySomethi
    Tumblr was Yahoo's last hope to bring in younger demographic. It failed, but make no mistake Yahoo was failing long before Mayers took over, she managed to slow it is all
    Aug 13 10
    • Akamai Technologies VmQQ44
      @greatloops, it was all over the news and the ceo has no regrets.

      https://pjmedia.com/trending/gillette-loses-billions-by-shaming-men/
      Aug 13
    • Microsoft Hero
      When I look up the Gillette thing it says it's mainly due to currency fluctuations.

      I would be absolutely flabbergasted if they lost more than, say, $1000 of business for the ads. They just weren't anti men. You had to really stretch to be insulted. Ads rarely cause people to buy less of a product. Much as you might hate add companies they know what they're doing.
      Aug 13
    • Microsoft Bork13
      Yeah ad companies really don't know what they are doing major holding companies stock valuations have been cratering.

      Re: 3B that could've been give back to the shareholders via buy backs. As the loss of Tumblr had shown if yahoo was going to fail best to start giving money back
      Aug 13
    • Akamai Technologies VmQQ44
      Companies always blame currency fluctuation.
      Aug 13
    • New / Eng
      TechLeed

      New Eng

      PRE
      Amazon
      TechLeedmore
      Easier to blame external than internal. Used to buy Gillette, now I don't.
      Aug 13
  • Microsoft GoLongElon
    I think I learned from all of this that furry porn is worth about 1.07 billion dollars
    Aug 13 1
    • Google uzaname
      It's not really porn if it's furry. I would rather call it hairotica.
      Aug 13
  • Oracle / R&D TLead
    I’m here to see age old Yahoo folks still defending Yahoo on blind. 🍿
    Aug 13 1
    • Microsoft Bork13
      I'm waiting for them to dust off thier Hope posters lol
      Aug 13
  • Oscar 🐨koala
    Tumblr was really popular among teens back in the early 2010 era. I was using it and met my ex there (good run for 3 years). Mainly because (1) myspace and xanga were dead and people needed a new place to blog, and (2) there was a lot of funny memes and videos But as snapchat and other vine came along, teens began to move to those social media platforms. I still use it to blog once in a while but it is not what it used to be. The follower prestige chase is over.
    Aug 13 2
    • Square / Eng 69420
      (3) porn
      Aug 13
    • Oscar 🐨koala
      Lol 😂 Porn came later at peak because that was where teens were hanging out. Then teens started to leave and creeps came and invaded, trying to score some underage/college age kids.
      Aug 13
  • Symantec / Eng sh10151
    They got rid of all the escorts & porn, & there was nothing left anyone was interested in.
    Aug 13 0
  • Box Aceulus
    As always blind does not disappoint when it comes to sexism. Seems like being an attractive woman garners media attention and that just infuriates the sexists even more. I do wonder how many actually follows the history of that company

    Yahoo was in a shitty state before Marissa. She was not a factor at all. Worse errors were made than buying Tumblr. Did the 10 other CEOs before do something better? Jerry Yang made a critical error in hiring Terry Semel a media guy instead of a tech person early on and ceded to Google and then that horrible deal where they sold search to Microsoft sealed it. Selling alibab early was a 40B dollar mistake. No better, was the dork that followed Tim.A; better at politicking than at execution. Quickly realized what a challenge he got himself into. Got himself fired in less than a year. Truth is fixing Yahoo was always going to be a losing proposition for anyone that took that job.
    Aug 14 9
    • Riot Games Ding Dong
      Well this is a pile of whataboutism if I've ever seen one
      Aug 14
    • Uber Makalato
      She was paid a lot of money to turn things around. Instead she just focused on pixel tweaking, and wasting money on acquihires. She refuses to fix/improve anything on the backend, which resulted in a world record of the most accounts compromised (1 billion?). No other CEO before her managed to f* things up this bad.
      Aug 14
    • Box Aceulus
      Totally agree with you there. Focussed on the wrong things and didn’t pay attention to what mattered. “

      “Worst ceo”. Disagree but dont need to rehash this.

      She refused to fix anything on the backend”. That is untrue. I actually happen to know Alex Stamos.
      Aug 14
    • Uber Makalato
      But he quit under her right?
      Aug 14
    • Box Aceulus
      Yeah he did quit under her
      Aug 14
  • Uber / Eng mH7bSe
    It would worth more than that if it turns into a full porn site.
    Aug 13 0

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