Posts tagged with ‘yahoo’
Well, kind of.
The tech world reeled when Yahoo announced in May that it would buy Tumblr, the weblogs platform favored by those tech-savvy young ‘uns, for a total of $1.1 billion.
Five intriguing tidbits about the deal came out in Yahoo’s quarterly financial documents, which landed last night.
Most eye-popping: Yahoo bought Tumblr for $990 million (the remainder of the billion-plus total goes to founder David Karp and other Tumblr employees), and an incredible $751 million of that value was attributed to “goodwill.”
Goodwill is an accounting term for the worth of an intangible asset blahblahblah, and in this case it means brand value. So 75% of Tumblr’s value lies in its cool factor. (More details in our main CNNMoney story here.)
FJP: Read through for the rest but know who could have used a perception of cool? The Boston Globe. Founded in 1872, it sold to Boston Red Sox owner John Henry for $70 million. Or, if you take into account pensions and other debts, it sold for negative $40 million.
The Washington Post might wish it had some “goodwill” too. Amazon founder Jeff Bezos, of course, just bought the 136-year-old paper for $250 million.
Takeaways: Don’t get old. Stay cool. Valuations are a weird gig.
— Marco Arment (one of Tumblr’s early developers) in a nice little ode to David Karp and Tumblr, on Tumblr’s history and why he’s hopeful about Yahoo’s acquisition. If you’re still wary about the whole deal, it’s a nice read.
Yahoo announced Monday that it has signed a deal with ABC News to feature the network’s original content on its Yahoo News website. Under the agreement, ABC News journalists such as Christiane Amanpour, Katie Couric, and Barbara Walters will produce video directly for the web, to be used on the Yahoo News site as well as ABC sites…
…While the two organizations will maintain editorial control of their own respective Web sites, they will co-produce coverage of major news and integrate their bureaus in New York, Washington, D.C., and Los Angeles, Reuters reports. Their combined traffic will exceed that of their closest rival, CNN.com, by 25 million visitors.
Rishad Tobaccowala, chief strategy and innovation officer at Vivaki, to the Wall Street Journal, Content Deluge Swamps Yahoo
The Wall Street Journal outlines how Yahoo and AOL are struggling with their ad-supported business models.
In a nutshell: in the not so distant past having great scale almost guaranteed profits, but with the proliferation and commoditization of most content that’s not the case anymore.
As the article’s authors write:
It’s a simple rule of any market. The more information that is created, the more the value is reduced. And despite attempts to woo spending with bigger, bolder and more targeted ads, services that help consumers navigate that content, namely search, remain the big money makers online.
In other words, services that make content discoverable either via search (Google) or social (Facebook) are thriving.
In 1998 Yahoo was charging CPM rates of $25, according to the Journal, that’s now down to $6.50.
Via Technology Review:
Google, Microsoft, and Yahoo have teamed up to encourage Web page operators to make the meaning of their pages understandable to search engines.
The move may finally encourage widespread use of technology that makes online information as comprehensible to computers as it is to humans. If the effort works, the result will be not only better search results, but also a wave of other intelligent apps and services able to understand online information almost as well as we do.
The three big Web companies launched the initiative, known as Schema.org, last week. It defines an interconnected vocabulary of terms that can be added to the HTML markup of a Web page to communicate the meaning of concepts on the page. A location referred to in text could be defined as a courthouse, which Schema.org understands as being a specific type of government building. People and events can also be defined, as can attributes like distance, mass, or duration. This data will allow search engines to better understand how useful a page may be for a given search query—for example, by making it clear that a page is about the headquarters of the U.S. Department of Defense, not five-sided regular shapes.
Still, if it can gain traction, it’s a big step forward for machine understanding of all this content we’re throwing at the Web which, in turn, means a whole new class of applications using such data might be in our near future.
*Hat tip to Aaron Bradley (@aaranged) on Twitter for pointing out that it’s microdata, not microformats, that Google, Microsoft and Yahoo are supporting.