Yahoo made readjustment for the development direction of Tumblr

Mayer carried out a series of acquisition since she has been working as Yahoo CEO. She was criticized by the board of directors as those acquisitions did not help a lot to the company. Yahoo spent $ 1 billion to acquired Tumblr which could be considered as the worst acquisition.

tumblr

Recently, Yahoo announced to start dealing the Tumblr assets, and give up the 2014 sales integrated plan.

In 2013, Mayer decided to acquire Tumblr with $ 1 billion. The analysts queried such offer was too much. Tumblr’s revenue and user growth disappointed the public in the following years. Its popularity is under Instagram’s, Snapchat’s and Pinterest.

Yahoo released its 4Q 2015 earning report lately. Yahoo announced that it carried out $230 million asset write-down to Tumblr. The American medium assumed Tumblr was the worst acquisition that Yahoo and Mayer has ever made.

BusinessInsider reported that Yahoo ended the independent operation of Tumblr in April 2014 and integrated it with Yahoo’s advertising sales department.

However, Yahoo made another decision that it would ease the integration plan and split off Tumblr from Yahoo advertising sales department. Then Tumblr will realize the independent operation as it did in 2013. Yahoo might close down some of assets or cut jobs to adjust its business.

Mayer predicted the revenue of Tumblr could reach $ 100 million in 2015. It turned out to be a failure. Yahoo works hard to adjust its business in order to enhance its competition, however, the result does not come as expectation.

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