Transcript for Yahoo, Tumblr CEOs on $1.1 Billion Deal, Incorporating Ads
Yahoo! A key partner for abc news together with the number one online news network made headlines yesterday by buying the blogging site tumblr which allows millions of users to be their own publishers of anything and everything. The two at the center, marissa mayer and david karp here to explain. First here's a little background. The announcement came from military's own tumblr page. "I'm delighted to announce we've reached an agreement with tumblr." She is betting $1.1 billion that the venture will be a match made in digital heaven. Created in 2007, the hugely popular tumblr allows users to share thoughts about everything from food to fashion to pop culture on their blogs. It boasts 108 million of them, 300 million monthly visitors spend a whopping 24 billion minutes. The brain child of david karp. The hipster dropout who founded it from his childhood bedroom and will remain tumblr's ceo with mayer's full support. We are not going to screw this up. With that promise let's welcome marissa mayer and david karp. Great to have both of you here this morning. I do want to talk about the deal but first one of the things we've seen with natural disasters like this tornado in oklahoma is the power of social media. So what can you tell us about what yahoo! And tumblr are doing now? Well, we do have people on the ground covering the story and we also have people who are uploading photos and sharing their experience of what it's like to be there. It really does create that community. Okay, so let's talk about the deal right here. We saw you make that promise. Not to screw this up. I mean, yahoo! Has famously in the past paid a lot of money for new sites and it hasn't worked out. What's your plan to avoid that kind of failure this time. Well, I think one of the thingses that so so special, tumblr is the community of users, community of creator and want to make sure that they recognize that tumblr is going to be independent, it's going to have the product road map and vision it's always had, needs to stay true to that user promise and setting up tumblr to do exactly that. You made that promise to your users on tumblr said and said you won't turn purple which means going yahoo!. In the past you've said the whole idea of advertising turns your stomach. So how are you going to make this work? How are you going to make money without losing your street cr. D. More specifically we've said the state of advertising on the web has been uninspiring to us and the truth is there's a lot of great advertising out in the world that actually makes "vogue" a better magazine and the thesis for our business was that's the type of advertising we could inspire and enable on tumblr and yahoo! Is the original digital media company, perfect partner to help us do that? You're the original hipster ceo. I don't know about hipster. I appreciate that one. It doesn't work for you? I prefer not. Okay, but here -- you have had a lot of success since dropping out of high school and you want to continue it now, of course, with tumblr. One what are the other challenges that you'll be facing, a fair amount of the content on tumblr is adult content, pornography. Are you worried that is going to turn off advertisers and is it something you're comfortable with. It's actually a mistaken It turns out that tumblr relative to many of its peer sites has relatively low amounts of -- what is it, like 10%, 12%. I think it's lower than ha. Uh-huh. We do want the community to have tools, tumblr has originated the phrase "not safe for work" and we want people to tag whether their content is safe for work. People looking for that kind of thing can find it and those who don't won't find it and make sure not to find it by accident. How do you do that? Community flagging. Machine learning so the end goal is you're able to draw a circle around that content and basically give users a switch to turn it on or off. If you don't want to bump into it you don't. Good luck with all this. I apologize for calling you a hipster. Thank you for having us this morning. I appreciate it. Absolutely.
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