Yahoo, Facebook In Tumblr Ad-sale Deal?
As Yahoo continues to deal with improvements, shutting down products and everything else just to continue surviving the harsh reality of the tech world, possible sales and deals have been popping out one after the other. And now it is reported that Yahoo has been in talks with Facebook for a possible working relationship that would benefit both companies.Advertisement
Apparently, the talk with Facebook is about an advertising partnership that would allow the social networking site to sell ads on Tumblr. As first reported by The Information, the Sunnyvale-based firm is considering the deal, which will involve splitting revenues between the two companies in the hopes of being able to get more ad revenue from the micro-blogging platform.
The supposed Facebook deal will involve sales through the social media’s Audience Network. The latter is a new offering, which allows advertisers already with the company sell ads that also run outside the networks and on other sites, too.
If this pushes through, it will only be one of a number of ad-sales deals the search engine already has, reports Fortune. One of the deals it has was a three-year search-related ad deal with fellow search engine Google signed last October. Another deal was with Software giant Microsoft, allowing them to share the revenue for ads that run on Microsoft properties.
Meanwhile, Gadgets 360 adds that in a recent securities filing, Yahoo has said that it has written down Tumblr’s value by 20 percent and may have to do it again, because it appears like the company could not generate much revenue from the micro-blogging platform founded by David Karp.
It was also confirmed by the Sunnyvale-based company that somewhere along the line, its advertising strategy failed, and it is unwinding the integration of the site into the firm’s existing sales operation. Instead, Tumblr will have its own dedicated sales team. The recent moves by the search engine is to try to jumpstart the advertising revenue of the micro-blogging site. Originally, Tumblr, a startup then, was acquired by Yahoo for $1.1 billion USD in 2013.
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