Yahoo buys Tumblr

Part of a wider trend.

Internet giant Yahoo has now announced the purchase of blogging site Tumblr in a $1.1bn (£720m) deal. At a press conference, former Google executive and current Yahoo CEO, Marissa Mayer announced the news in New York’s Times Square, following a meeting with the Yahoo board on Sunday.

Launched from the bedroom of founder David Karp in 2007, Tumblr today boasts 110m users, a similar number to those using Yahoo’s services, and currently hosts 42m blogs on its site. A success story since day one, within a fortnight of its launch, 75,000 bloggers were already logging on regularly.

This acquisition is the latest attempt by Yahoo to shore up its business, having lost much of the market share of its core search business. Once a leading search engine and web portal in the US, Yahoo is attempting to diversify its product offering, following the erosion of several of its products by the rise and rise of rivals Google and Facebook.

Tumblr will give the organisation access to a thriving user base and hopefully steady the ship, after a stormy few years for Yahoo, which has seen six different executives in the top job since 2009, and the workforce cut by 2,000 in 2012. The purchase of the blogging site, plus social news platform Snip.it in January, signal Mayer’s intention to grow through acquisitions.

It marks a wider trend in the technology industry, which has seen a number of large players competing to snap up fast-growing internet start-ups, giving them access to a rapidly expanding user base and new means of communication with their customers.

Mayer has certainly made an impact since her appointment in July 2012, cutting Yahoo’s products from around 60 to just a core of around a dozen, plus a strict new hiring process and the outlawing of working from home. Criticism and praise have been heaped on her in equal measure, but this latest deal could make or break her time at the top, with industry analysts questioning how a company can pay $1.1bn cash for Tumblr, having recorded just £13m in sales in 2012.

Photograph: Getty Images

Mark Brierley is a group editor at Global Trade Media

Ukip's Nigel Farage and Paul Nuttall. Photo: Getty
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Is the general election 2017 the end of Ukip?

Ukip led the way to Brexit, but now the party is on less than 10 per cent in the polls. 

Ukip could be finished. Ukip has only ever had two MPs, but it held an outside influence on politics: without it, we’d probably never have had the EU referendum. But Brexit has turned Ukip into a single-issue party without an issue. Ukip’s sole remaining MP, Douglas Carswell, left the party in March 2017, and told Sky News’ Adam Boulton that there was “no point” to the party anymore. 

Not everyone in Ukip has given up, though: Nigel Farage told Peston on Sunday that Ukip “will survive”, and current leader Paul Nuttall will be contesting a seat this year. But Ukip is standing in fewer constituencies than last time thanks to a shortage of both money and people. Who benefits if Ukip is finished? It’s likely to be the Tories. 

Is Ukip finished? 

What are Ukip's poll ratings?

Ukip’s poll ratings peaked in June 2016 at 16 per cent. Since the leave campaign’s success, that has steadily declined so that Ukip is going into the 2017 general election on 4 per cent, according to the latest polls. If the polls can be trusted, that’s a serious collapse.

Can Ukip get anymore MPs?

In the 2015 general election Ukip contested nearly every seat and got 13 per cent of the vote, making it the third biggest party (although is only returned one MP). Now Ukip is reportedly struggling to find candidates and could stand in as few as 100 seats. Ukip leader Paul Nuttall will stand in Boston and Skegness, but both ex-leader Nigel Farage and donor Arron Banks have ruled themselves out of running this time.

How many members does Ukip have?

Ukip’s membership declined from 45,994 at the 2015 general election to 39,000 in 2016. That’s a worrying sign for any political party, which relies on grassroots memberships to put in the campaigning legwork.

What does Ukip's decline mean for Labour and the Conservatives? 

The rise of Ukip took votes from both the Conservatives and Labour, with a nationalist message that appealed to disaffected voters from both right and left. But the decline of Ukip only seems to be helping the Conservatives. Stephen Bush has written about how in Wales voting Ukip seems to have been a gateway drug for traditional Labour voters who are now backing the mainstream right; so the voters Ukip took from the Conservatives are reverting to the Conservatives, and the ones they took from Labour are transferring to the Conservatives too.

Ukip might be finished as an electoral force, but its influence on the rest of British politics will be felt for many years yet. 

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