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Yahoo Announces Management Changes for Its Tumblr Business


Nov. 20 2020, Updated 5:06 p.m. ET

Yahoo changes management for its growth businesses

Last week, Yahoo (YHOO) announced a number of management changes for its potential growth areas—Tumblr and web video. A report from the Wall Street Journal cited people who are familiar with the matter. Simon Khalaf was previously leading the mobile analytics unit Flurry. Now, he will oversee Tumblr. Adam Cahan was previously overseeing Yahoo’s mobile division. In another change, he will lead the web video group.

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We’ll talk about Tumblr first. Yahoo acquired Tumblr for $1.1 billion in 2013. David Karp founded Tumblr. He led the business at Yahoo as well. However, now he will report to Simon Khalaf. This is a demotion for Karp. These changes to Tumblr’s business are surprising—considering that Tumblr is one of the fastest growing media networks in the world.

Tumblr is the fastest growing social network

According to a report from Global Web Index and as the above chart shows, Tumblr was the fastest growing social network in 4Q14. The number of monthly active users grew by 120%. In comparison, Pinterest, Instagram, LinkedIn (LNKD), Twitter, YouTube, Google+ (GOOG), and Facebook (FB) had comparatively slower growth.

According to another report from eMarketer, citing comScore Media Metrix, young Millennials—people between the age group of 18 and 24—accounted for the majority of Snapchat and Tumblr users. We covered this in Snapchat is Most Popular among Young Millennials, New Study Finds.

According to Yahoo, Tumblr’s user base rose from 420 million in 3Q14 to 460 million in 4Q14—up 9% quarter-over-quarter. In comparison, Facebook’s Instagram users grew to 300 million in 4Q14. Twitter (TWTR) only gained 4 million monthly active users in 4Q14 for a total of 288 million users.

If you’re bullish about Yahoo, you should consider the iShares Core S&P 500 ETF (IYW). Yahoo accounts for 1.1% of IYW.


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