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

Photo: Getty
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Who will win the Copeland by-election?

Labour face a tricky task in holding onto the seat. 

What’s the Copeland by-election about? That’s the question that will decide who wins it.

The Conservatives want it to be about the nuclear industry, which is the seat’s biggest employer, and Jeremy Corbyn’s long history of opposition to nuclear power.

Labour want it to be about the difficulties of the NHS in Cumbria in general and the future of West Cumberland Hospital in particular.

Who’s winning? Neither party is confident of victory but both sides think it will be close. That Theresa May has visited is a sign of the confidence in Conservative headquarters that, win or lose, Labour will not increase its majority from the six-point lead it held over the Conservatives in May 2015. (It’s always more instructive to talk about vote share rather than raw numbers, in by-elections in particular.)

But her visit may have been counterproductive. Yes, she is the most popular politician in Britain according to all the polls, but in visiting she has added fuel to the fire of Labour’s message that the Conservatives are keeping an anxious eye on the outcome.

Labour strategists feared that “the oxygen” would come out of the campaign if May used her visit to offer a guarantee about West Cumberland Hospital. Instead, she refused to answer, merely hyping up the issue further.

The party is nervous that opposition to Corbyn is going to supress turnout among their voters, but on the Conservative side, there is considerable irritation that May’s visit has made their task harder, too.

Voters know the difference between a by-election and a general election and my hunch is that people will get they can have a free hit on the health question without risking the future of the nuclear factory. That Corbyn has U-Turned on nuclear power only helps.

I said last week that if I knew what the local paper would look like between now and then I would be able to call the outcome. Today the West Cumbria News & Star leads with Downing Street’s refusal to answer questions about West Cumberland Hospital. All the signs favour Labour. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.