So has acquired a blogging site called for $1.1 Billion!!! Any comments from our members?

Dear Anand,

Good that you have brought this point for discussion. Acquisition is a major part of strategic management. Since I track this company for my training on "Strategic Management", I do extensive reading on this company.

However, I doubt whether this is right forum for discussion of this. This is because large chunk of members of this forum are juniors and their requirements are basic.

It would be too early to comment on Yahoo's acquisition of Tumblr at this stage. The blogging site is popular in USA. But in Asia or Africa it is not that popular. On the contrary Yahoo is quite popular in Africa and Asia (except India).

Secondly, after acquisition you should have ready made plan on what do further. Though HP acquired Palm mobile couple of years ago but then HP failed to make foray into the telecom segment.

Marissa Mayer the current CEO of Yahoo should think of bringing up some breakthrough technology. This is what Apple and Google did in 2007 by bringing iPad and Android OS in the market. These two companies not only changed the rules of the game but then they started the dictating the rules to others.

Ms Mayer should concentrate on simplifying the satellite communication. Imagine the mobile phones in our hand start communicating through satellites. It will eliminate the tyranny of the mobile service providers for "network being not available". Perhaps she may do something else. I wrote about satellite since I thought of it.

However, if you look back then you will find Ms Mayer has been strengthening Yahoo's core business by buying various applications. Just couple of months ago she bought mobile application that UK's teenager had developed. How far this works that remains to be seen. This is because though share prices have risen by 60% after Ms Mayer became CEO, there is no major increase in revenue. As of now the market has responded to the sentiment. But then sentiments are ephemeral. Hopefully Ms Mayer knows it well.


Dinesh V Divekar

From India, Bangalore
Here are two of the best articles, I read about this acquisition.
What is great about the first one, is the way a Billion dollar firm's revenue have been tracked to its potential of being a $100 billion firm. Did Marissa Mayer pay too much for Tumblr?
The next one is about how a marketer made the most of this acquisition. With Yahoo! Buying Tumblr, How Much Does Social Media Marketer Gary Vaynerchuk Stand To Make?
Why these two articles are important, because it can help us review the growth within the industry and how big firms are viewing the emerging ones for a greater control over the market.

From India, Mumbai

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