Tumblr and Yahoo... Will It Work?

Image source: ABC News

Costing them 1.1 Billion dollars, Yahoo! is acquiring the social media blogging platform Tumblr. Lately Yahoo! CEO Marissa Mayer has been a on a complete shopping spree since joining the company last July, acquiring over ten companies in hope to bring fresh energy to it's business. However, Tumblr is Yahoo!'s riskiest and priciest checkout yet.

What will Yahoo benefit?
Yahoo! benefits big. Tumblr has a young audience, and that's exactly what Yahoo! is looking to bring into their rusty and left in time business model and demographic.

What will Tumblr benefit?
Not sure if "benefits" is the word. Tumblr will have the opportunity to expand in Yahoo's global network and services - but yet again, none have the same audience as Tumblr does, so it'll be interesting to see how Yahoo! manages to merge in Tumblr. Nether less, Mayer promises "not to screw it up" as she'll let the company run independently.

The key to this acquisition, especially, is how the two different companies merge their products and audiences. Also, Yahoo! seems a little cautious to touch the platform, despite their failed previous acquisitions; I would actually like to see a bit of Yahoo! mixed into the Tumblr network, I mean, they did pay over a billion dollars for it.