IB Business and Management
Will the acquisition of Tumblr by Yahoo significantly help this former “internet pioneer regain traction with younger internet users”?
Word Count: 1438
Candidate Name: Phoebe, Leung Ching Lam
Candidate Number: 003069-037
Class: F6.CassiaContents Page
The purpose of this essay is to investigate whether the acquisition of Tumblr by Yahoo will significantly help the former Internet pioneer regain traction with younger Internet users. Yahoo used to be one of the most popular website and search engine in the early days of Internet. It has provided a large range of services to its users, including instant messaging, electronic mail and social network services. (Yahoo, 2013)However, its popularity quickly declined in the recent years and was quickly surpassed by newer websites, such as Google and Facebook. The younger generation barely knows about Yahoo and it has problems maintaining high growth or exposure like other Internet companies.
As the younger generation is very important for the Internet industry as they are the major users of it, Yahoo would like to increase its market share in the teenage and young adults sector by either developing new services on its own to cater the needs of theirs or to buy companies that are popular among them. (Yahoo press release, 2013) Possibly because of this, Yahoo choose to buy Tumblr, a microblog website that is popular among teenagers with a good presence in the smartphone fields as well.
In this essay, primary and secondary research will be done in order to find out whether this acquisition is beneficial to Yahoo in its expansion to the youth market or not. Calculations on the cash flow well as literature reviews will be done in order to achieve this goal. Also, analysis would be made according the knowledge learned from lessons and textbooks. 2. Findings and Analysis
Although it is quite expensive to
Bibliography: BBC News - Yahoo to buy Tumblr for $1.1bn. (n.d.). BBC - Homepage. Retrieved August 24, 2013, from http://www.bbc.co.uk/news/business-22591026 Isidore, C Yahoo! to Acquire Tumblr (NASDAQ:YHOO). (n.d.). Yahoo! Inc. - Investor Relations. Retrieved August 24, 2013, from http://yhoo.client.shareholder.com/releasedetail.cfm?ReleaseID=765892 5 Yahoo - Yahoo! to Acquire Tumblr. (n.d.). Yahoo - Investor Relations. Retrieved October 20, 2013, from http://investor.yahoo.net/releasedetail.cfm?ReleaseID=765892 Supporting Document 2 – Financial Statements for Yahoo! Inc