Mendoza School of Business

Yahoo’s Tumblr purchase fraught with challenges

Published: May 20, 2013 / Author: Jon Yu

The following is an excerpt from an article in USA Today that quotes Management Professor Brian Proffitt on Yahoo’s purchase of Tumblr. To read the entire article visit: Yahoo’s Tumblr purchase fraught with challenges

Yahoo CEO Marissa Mayer says her company’s $1.1 billion acquisition of Tumblr could be a game changer. But some question whether Yahoo is game for the hip upstart.

“This is incredibly important,” Mayer said in a phone interview before a press conference in New York Monday. “Our (mergers and acquisition) was around acquiring talent. This is as much strategic, enhancing growth and getting amazing content.”

Then there is Tumblr’s adult content, which can include pornography. “Tumblr does not insist on knowing the real identities for users, and some of the Tumblr content is very adult-oriented, both features that advertisers would find repellant,” says Brian Proffitt, an adjunct instructor of management in the University of Notre Dame’s Mendoza College of Business.


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