Yahoo and Tumblr CEOs Talk Acquisition, Adult Content and Advertising

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You've said Yahoo won't be messing much with Tumblr. But how will Tumblr impact the Yahoo experience?
Mayer: There's a lot that can happen there. One of the things we think is really exciting is that the thriving Tumblr community is generating a lot of beautiful and compelling content and can we pull that content into the news streams that are on the homepage today or Yahoo News.

$1.1 Billion is a lot of money to pay for a company and you've been acquiring other companies. Is this an exception? Are there more big purchases to come?
Mayer: We had only been doing small acquisitions. We have done about ten, but they had all been small – 5 or 10 person companies. You only do an acquisition like this if it really makes sense. The fit between Yahoo and Tumblr is better than almost any acquisition I have seen in terms of the way their offering fits with our offering. It's completely complementary and that's rare to find. That's why we did this now. It's obviously an exception. To put it in context for Yahoo, we haven't done an acquisition this large since 2003. But no, you don't do acquisitions like this all the time.

There was chatter that this deal was a move to help Yahoo elevate its perception as cool and to appeal to another demographic. Is there truth to that?
Mayer: No, we are just doing what is right overall for our business. Tumblr obviously has a younger demographic and I think that's great, but with Yahoo we want to have really broad appeal. You don't do a transaction like this for perception, you do it because they have great technology and great community and content and it fits really well with ours.

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