Yahoo is trying to stay relevant, and the company’s recent Tumblr acquisition is proof of their desperate efforts to keep up with the likes of Facebook, Twitter and Instagram. So desperate in fact that since Marissa Mayer’s takeover as Yahoo CEO in July 2012, she’s acquired 11 companies including the $1 billion Tumblr.
While Marissa hopes that Yahoo will get her groove back, she’s neglecting how far behind Yahoo is in every aspect of web culture today. Yahoo was a powerhouse in the early days of the internet, but they failed to adapt and were left behind. It has the resources to make a resurgence, but they missed the window of opportunity to innovate in the social space while the iron was still hot. They still offer decent products like Yahoo Finance and Sports, but overall the company is struggling to remain relevant in a digital world they don’t recognize anymore.
The Tumblr takeover was counterproductive at best. It may appeal to advertisers in the short term as far as reaching younger demographics, but it won’t change the perceptions these generations have about the company. Brands like Facebook, Twitter, Google, Apple, Pinterest, Instagram and Reddit have found their niche and are successfully building their respective user bases. Yahoo’s complacency during this time of rapid change is one of many reasons why they lost their competitive edge. It’s very congested now and it’s safe to say Yahoo missed the boat.
Brad Walker 