Yahoo! Inc. (YHOO) Vs Google Inc (GOOGL): Marissa Mayer’s Plan To Make Tumblr Video Platform Will Fail Badly


In an article on Pando, David Holmes discussed the latest plans of Yahoo! Inc. (NASDAQ:YHOO)’s CEO, Marissa Mayer to change Tumblr in an online video streaming platform, just like Google Inc (NASDAQ:GOOGL)’s Youtube. Holmes thinks that apparently, the plan might look innovative and interesting, but it will fail badly for a number of reasons. More than 61% of teens use Tumblr and they are addicted to the freedom of blogging and content sharing. But unfortunately for Yahoo, this content sharing does not generate any revenue. Yahoo! Inc. (NASDAQ:YHOO)’s CEO is desperate to make some moves to increase the company’s revenue graph which is tumbling since months.

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Online video, on the other hand generates a lot of money and this is the reason why Yahoo is trying to change Tumblr into a video platform. Holmes said that Google Inc (NASDAQ:GOOGL)’s Youtube posted a revenue of $3.5 billion last year, even after missing the estimates. Yahoo! Inc. (NASDAQ:YHOO) acquired Tumblr with high hopes, but the revenue generation from Tumblr is very small, thinks Holmes. Google Inc (NASDAQ:GOOGL), on the other hand gets a hefty revenue and popularity because of the video platform.

Yahoo! Inc. (NASDAQ:YHOO) even tried to imbibe some of the famous Google Inc (NASDAQ:GOOGL)’s Youtube stars in the past, but failed. Holmes quoted Re/Code’s Peter Kafka and said that Google Inc (NASDAQ:GOOGL) invested millions in order to sustain famous Youtube stars.

Holmes thinks that famous Google Inc (NASDAQ:GOOGL)’s Youtube stars will not leave Youtube platform because there is a high risk in moving towards Yahoo! Inc. (NASDAQ:YHOO)’s Tumblr. Tumblr may be the first choice of teens in content and blogs but when it comes to videos, Youtube is peerless. Google Inc (NASDAQ:GOOGL)’s Youtube has over a billion unique visitors every month whereas Tumblr has 400 million visitors each month.

John Thaler‘s Jat Capital Management hold around 8.8 million Yahoo! Inc. (NASDAQ:YHOO) shares. David Tepper’s Appaloosa Management Lp hold around 600,000 Google Inc (NASDAQ:GOOGL) shares.

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