Former Yahoo CEO Marissa Mayer announced that the company wanted to buy Netflix and Hulu instead of Tumblr in 2013 and said she regretted this decision. Tumblr was acquired by Yahoo for $1.1 billion in 2013. However, the bad situation caused the platform to be sold to another company for less than $3 million in 2019.
Former CEO of US technology giant Yahoo Marissa Mayer, talked about his time at the head of the company. Mayer, who served in this position in 2012-2017, made striking statements about the acquisitions in an interview with Tech Brew.
Mayer, Yahoo’s popular digital platforms years ago Want to buy Netflix and Hulu?; however, he stated that he bought Tumblr instead.
Yahoo regrets buying Tumblr instead of Netflix and Hulu in 2013
Marissa Mayer
In his statement on the subject, Mayer said, “We wanted a transformative purchase and bought Tumblr. Ironically, we were also considering whether it was possible to buy Hulu or Netflix at the time. Netflix was worth $4 billion at the time and Hulu was worth $1.3 billion. In retrospect, buying one of these could be so much better” he expressed his regret.
Yahoo launched its social media platform Tumblr in 2013. $1.1 billion he bought. However, it later turned out that this was not a very good investment. As Tumblr’s popularity plummeted, in 2016 Yahoo added value to the platform. 230 million dollars as declared.
Also, Tumblr was removed from Apple in 2018 for child pornography. The platform later decided to completely ban sexual content. After that, users started to leave the platform and traffic dropped by close to 30%.
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In 2019, after the acquisition of Yahoo by Verizon, Tumblr was paid more than the company paid. much cheaper (although not definitively disclosed, reports suggest it’s under $3 million) to Automatic Inc. sold. All this has revealed that Tumblr is a very bad investment for Yahoo, it would be much better if it bought Netflix and Hulu. So Mayer is quite right to regret it.