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Yahoo Becomes Aggressive with a Major Acquisition and a Brand Redesign

Yahoo has been making big moves lately, possibly attempting to rejuvenate its image in the modern market by revitalizing some of its brands and acquiring new ones.  The first major move by the company was the acquisition of the social network and blogging site Tumblr.  Yahoo acquired the New York company for $1.1 billion dollars, which one could break down into roughly $3.67 per each of Tumblr’s 300 million unique visitors.   The two companies made the deal almost entirely in cash, with the exception of a small amount of Yahoo stock for Tumblr CEO David Karp.

What does this change for Tumblr users?  Not much will be different, according to official statements by Yahoo CEO Marissa Mayer.  Mayer claimed on Yahoo’s own Tumblr page that her company is “delighted” about the acquisition of the social network and candidly promised “not to screw it up.”  She has also said that Tumblr will operate independently and the entire team will remain in place under their CEO David Karp.  However, Mayer has also publicly said that her company is committed to monetizing Tumblr, which means some changes, most likely in advertising, are bound to come eventually. 

Yahoo’s second big move this week was launching a complete redesign of Flickr, their cloud storage service for photographs.  The new design attempts to eliminate as much white space as possible, delivering wall-to-wall photographs on each page of the site. Some users may have trouble getting used to the new design.  Those who have serious difficulties should contact computer support for help.

Even more important than Flickr’s new design is the new business model that accompanies it.  Rather than offer a very limited free model (only 200 pictures per user) and an unlimited service for $25 a month, Flickr now offers every user a terabyte of storage free.  A terabyte can hold over 400,000 8-megapixel photographs. It is possible that Yahoo is improving Flickr’s free option so dramatically in a gamble that advertising revenue will increase with more users trying the free service.  Even if you use Flickr to store all your pictures in the cloud, it is still smart to have a data backup for yourself in case the service ever closes down.

Both of these moves show that Yahoo is serious about increasing its relevance in an Internet world currently dominated by Google and Facebook.  Only time will tell if their efforts improve their fortunes.

About RESCUECOM:

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david@rescuecom.com
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