The first rule of being cool is not telling people you want to be cool. Yahoo , with its M&A team in full pray-and-spray acquisition mode post- hire, hitting on everything that walks, or at least has traction.
I’ve heard rumors that Yahoo was trying to get into the following deals over the past couple of months: Foursquare (at an $800 million asking price). Path (at a $2 billion asking price). Pinterest. Hulu. Zynga. Daily Motion. And at a smaller scale: Gdgt. Wavii. Media Ocean (?). A spate of others. And now Tumblr. “Literally they talk to everyone,” said one person familiar with the matter on the matter.
There was a kid in my high school who used to buy the popular kids lunch so he could sit with them. Yahoo has become that kid. At Tumblr would be a pricey picnic, about Yahoo has on hand.
But it could work if it goes through, which A Tumblr buy fixes the issue of , particularly amongst us wild, mobile-addicted youth. Yahoo, which wants to be a “key part of everyday life,” is limited by the fact that young people don’t want to use it at all, let alone every day. Tumblr , hitting the sweet spot of mobile, social communications, messaging and viral distribution — Even bringing in some coin in the process.
Just to heap another dollop of speculation on top of this already absurdly speculative post: It wouldn’t be surprising if Google was also courting , as Mayer, a former Googler, still thinks like she’s in Google M&A, “Hey, a critical mass of people are using it … Let’s buy it and stick ads on it!.” Imagine what the social blogging platform could do to revive Google+ engagement and content creation … And how much more it would be worth to Google?
And it certainly makes sense for Yahoo to explore this strategy as well, in its larger, non-acquihire deals. But perhaps it should try being less promiscuous about it.