Former CEO of Yahoo Marissa Mayer has said that the company should have bought Netflix or Hulu and not Tumblr. She, as the CEO by then, recalled how the company was also considering the possibility to purchase Netflix or Hulu.
In an interview with Tech Brew, Mayer said, “We looked at a transformative acquisition, and we bought Tumblr.” She emphasised that Netflix was $4 billion and Hulu was $1.3 billion at that time.
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However, Yahoo purchased Tumblr for $1.1 billion in 2013. A report by The Verge has revealed that the company pushed its employees to meet unrealistic sales goals and introduced ads to Tumblr. Yahoo wrote down Tumblr’s value by $230 million in 2016. The company stated a combination of factors, according to reports, “including a decrease in projected Tumblr operating results and estimated future cash flows.”
Mayer further mentioned that Yahoo is now an independent and a privately held company. “But I am not sure that the foray through Verizon was as helpful to some of the technologies and what they had to offer as it could have been,” she added. Verizon acquired Yahoo in 2017 for $4.48 billion, following which Mayer exited the company.
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Published on May 8, 2023
