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Why Is It Going Wrong for Yahoo's Tumblr and is Facebook Its Savior?
By: The Drum
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Yahoo chief Marissa Mayer famously promised "not to screw up" Tumblr following its £1bn purchase in 2013, but two years later a loss of $500m in its brand value suggests she’s done just that.

The beleaguered online business acknowledged its social network is now worth around a third of the $1.1bn that it originally paid for. Some $482m has been knocked off the site's value in its latest quarter, off the back of the $230m it wrote off in the previous quarter.

Much of the downgrade stems from Yahoo’s failure to meet an ambitious $100m sales goal for Tumblr this year, which it was convinced it could hit following a growing user base and early buzz around its sponsored advertising.

Indeed, Nescafe was one brand to hail Tumblr’s potential as a marketing platform last September, while former Disney executive Stephanie Dolgins was brought in just months earlier as its chief marketing officer. There was momentum behind Tumblr 12 months ago and the future looked positive. Fast forward to now and its altogether different prospect, one that’s clearly not played out in the way Mayer had envisaged.

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This article was published by The Drum. A link to the original appears at the end of this post. www.thedrum.com
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